It is a frequent question and the short answer is yes, you have to list all debts when you file a bankruptcy. If you borrow money from a parent, it is still considered a debt and it does have to be listed. The Bankruptcy Court requires everything to be accurate and if the parties were not prepared; your bankruptcy could theoretically be denied. If you are embarrassed about letting a parent or loved one knows about the bankruptcy, then the odds are they probably already know about your financial difficulties. The person might actually be glad to have your debt discharged in Bankruptcy rather than not being able to pay off your debt. You can still pay whenever you want, and there is no legal obligation.
In addition, the person may actually get a benefit under the tax benefit by an uncollectible debt; which with Bankruptcy, it might allow it by something called “absolute proof of loss” which you can’t ever collect. The person should speak to a Tax Advisor before hand, and it could actually have some significant benefits.