Good afternoon, I live in Baldwin Park California and owned property in Arlington, Texas and Dallas, Texas. Both duplexes were foreclosed 3/3/09. Today I received two forms one 1099-C line item #2 $74288.84 and another 1099-A line item #2 Balance of principal outstanding $125,831.10. My tax preparer states that I owe approximately 17K to the IRS regarding the 1099-C. I am currently in the process of filing BK 13 and my attorney wants me to include both 1099 in my personal tax returns so the IRS can assess the amount owe so they can include the amount owed with my filing of BK13. Are there any exemptions on these two homes I lost because the banks did not want to work with me? I file married with 4 children and always a W-2 employee. Please provide some advise in terms what should I do?

Thanks
VS