Cash for Keys or Forclosure - both with bankruptcy. Which?

[cooperdoodle]

My husband has been offered cash for keys on home we are not living in but is in his name only. The home is out of state and we have renters/caretakers who are only paying a 1/3 of the rent just to keep it in good shape. (covers taxes and insurance only) We had to move because of husbands plant closing down. So relocated to NC 3 years ago.

BoA offered $3000. However, in about a year we will be filing bankruptcy. (Waiting for 3 year IRS Tax discharge which we are on payment plan with them but no liens or levies were done). We live in North Carolina so I believe that we cannot be levied or garnished with credit card debt even though we may receive a judgement or two down the road.

If we did cash for keys I would feel obligated for us to give it to our renters/caretakers who are finacially strapped as well, to help them relocate. I know if we did take the offer after filing bankruptcy it would go to the estate to cover debts.

Since My husband is definitely filing for bankruptcy, is there any real benefits to taking cash for keys now? We also don't want to owe for taxes on difference on home sale and what we owe which I am not sure bankruptcy would discharge would take care of.

We have 20 days to make up our mind so we are doing a lot of research. Thanks for any help.

[tobee43]

this must be a difficult situation since i'm certain you care for your tenants. since this is not your primary residence, i would take the money while it was offered and unfortunately give notice to your tenants. since you have been paying all the mortgage and taxes for years, i would just let you tenants stay for free until the NOD is rec'd as payment of "thank" you to them.

i'm certain there are other views on this type of situation, however, i think you should take the money for BofA while they are offering.