I have filed for bankruptcy within the past year and had it discharged in Oct. We filed last June and I stopped makeing mortgage payments on my house last May. I had to give up my house in the bankruptcy due to the fact that my inlaws signed their house over to my husband 6 years ago believing at the time that the house would be his only when they passed on and to find out when we filed the their house is actually his now. This being the case I had to give up my house so that their house wouldn't be taken to pay my debt. My husband had a trucking business that with the cost of fuel could survive no longer and even though it was the business that failed a Chapter 7 ended up being what worked best for us because there was no way to keep the business and hope the prices would go down and that we would be able to make our payments so we opted to take the chapter 7 and wipe the slate clean. I don't reget the decision, I just having lost my house without being able to keep it no matter how bad I wanted to. That being the case, the mortgage company is now ready to settle with a deed in lieu of forclosure. My question is this, if this is the option that I choose where my house was included in my bankruptcy will the debt be forgiven or am I better off to avoid this and go with a regular foreclosure? I haven't lived at the property since last May and I have since moved 1600 miles away. I have absolutely no desire to move back and there is no way for me to keep my house, if I was to take the option my inlaws would loose theirs. My question is this...Will I have a huge tax burden if I do take the DIL? Please help me soon I need to make a decision rather soon.