Is a deed n lieu better than bankruptcy?

In many respects, bankruptcy is more helpful to homeowners than a deed in lieu. For instance, in bankruptcy you can remove your liability on the loan. On the other hand, a deed in lieu does not necessarily release you from the debt. Additionally, there may be tax consequences, such as a 1099C with a deed in lieu. Bankruptcy does not carry the risk of a 1099C being issued by the bank.