This is a question for a bankruptcy attorney. With the cease and desist letter, at least there is a potential creditor. Your bankruptcy attorney will be able to help you.
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Yes. You are obligated to list all your creditors, even those who you believe to have bogus claims, and you would want to.
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Yes, you should include the monetary demand on your creditors list. The demand is not, moreover, "extortion." It is presumptively a valid and legally supportable demand in exchange for settling copyright infringement claims against you.
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It is a claim against you, so you should list it. Consult your bankruptcy attorney.
"Free images off Internet"??? "now I am filing bankruptcy" "notorious extortion letter" I am not getting any sense that you respect your legal obligations with respect to copyrights any more than you respect your obligations to pay your bills. I am not getting any sense of a reason we should do anything for you here.
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