Also, any tax implications should be checked with your CPA or a tax expert. We are Realtors, and expert at selling property, not advising on tax matters. If you need advice on the short sale, or B of A, I can help, but no one on this forum (who is a Realtor), should be advising you on Bankruptcy,nor tax law or implications.
GOOD LUCK! The answers are out there, probably just a phone call away.