Deed in lieu then chapter 13?

[ATC]

I need some advice
Does it matter if i do a Deed in lieu of foreclosure then file chapter 13. I'm about 6 months late on my rental property and I am pretty sure BofA is going to foreclose on this property pretty soon, I want to wait to file Chapter 13 for another 4-5 months. BofA keeps calling me and asking me for the final paperwork so they can do the Deed in Lieu of for me. I'm worried about the tax consequences if I agree to this now but file Chapter 13 later.

[espo1357]

I need some advice
Does it matter if i do a Deed in lieu of foreclosure then file chapter 13. I'm about 6 months late on my rental property and I am pretty sure BofA is going to foreclose on this property pretty soon, I want to wait to file Chapter 13 for another 4-5 months. BofA keeps calling me and asking me for the final paperwork so they can do the Deed in Lieu of for me. I'm worried about the tax consequences if I agree to this now but file Chapter 13 later.

The right answer is we don't have enough information (at least I don't), and to speak to an attorney.

Anyway, the Chapter 13 is good if you want to keep the property. If you don't want to keep it, then go with a 7 (if you qualify for a 7).

If you want to keep the property, then you will pay the late mortgage payments within 3 to 5 years, and then just resume normal payments on the property.

Good luck.

[HHM]

Since it is an investment property, you will have to deal with capital gain/loss (depending on your basis) regardless of BK.
There is no real benefit to you for doing a DIL, so I am not sure you really need to bother with it. Also, if BofA wants you sign off on some continuing obligation to the deficiency and you turn around and file BK, that could create a problem for your BK.