You can include all debts in bankruptcy except some state and federal liens. You also have the right to not include certain debts. If, for example, you want to keep your car or your home, you can exclude those from the bankruptcy filing. If you include the mortgages (first and second), I assume that you are willing to leave the home.

You should include all your secured debt in your listing of creditors in your bankruptcy. This means any mortgages whether they be a first, second, or third mortgage, should be listed. In a bankruptcy case you also have to supply copies of any mortgages to your bankruptcy trustee.

In the bankruptcy schedules you also have to complete a schedule of your household expenses. You would truthfully have to disclose the payment you are making on the second mortgage to have an accurate picture of what your income and expenses truly are.

If you want to keep the home, you can usually reaffirm on mortgages in a bankruptcy. This means you sign paperwork and "reaffirm" the terms of the mortgage including what the balance still owing is, what the interest rate is, and what the monthly payment is. A judge will only approve a reaffirmation agreement if the judge feels you really have the ability to keep up with the payments based on the income and expenses you have disclosed.

There really would be no advantage to not listing a secured debt on your bankruptcy. You either have to keep paying on the debt and will most likely sign a reaffirmation agreement, or you will decide you can't keep the collateral (such as the home) and you will let the creditor foreclose or repossess. If you are in financial difficulty and considering bankruptcy, you would want to use the protection of the Bankruptcy Court to help you work things out with your mortgage lender, or to have the extra time to decide if you want to give up the home and let it go to foreclosure.

You really want to be as truthful as possible when completing your bankruptcy schedules and disclose all information about your assets and liabilities and your income and expenses.