Yes, you can file bankruptcy at any time (assuming you are otherwise eligible).Be sure you analyze all the tax consequences of the deed in lieu before proceeding.  Bankruptcy can prevent any tax consequences from occurring upon sale of a property as long as (usually) the case is filed prior to the sale.  However, in most cases any taxes that are owed prior to filing the bankruptcy case are not dischargeable.  So it's important to analyze everything before you choose a path.Mark J. Markus, Attorney at LawHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://bklaw.com/bankruptcy-blog/Follow Me on Twitter:  @bklawr