a deed in lieu is a way to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process does not allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure. So, if you want to stay in the house don't sign it.
By listing your home in the bankruptcy you opened a kettle of worms. If the bank filed that they didn't want their money going down to the tubes and are objecting to the bankruptcy a judge could decide whether you stay or go and in most cases that I hve seen - unlicke a behicle - you will probably go.
My best advice is to work something out with the bank but sign nothing till an attorney reviews it and tells you what your best options are. There are not pat answers, each case is different.