The second mortgage has had no payments made to it and was actually discharged in a 2010 bankruptcy.  

I am analyzing a duplex near Seattle where the owners are in Bankruptcy (not sure if chapter 7 or 13?) 

The second mortgage has had no payments made to it and was actually discharged in a 2010 bankruptcy.

If you don't have all of that, stalling a short sale is a myth and urban legend if a bankruptcy filing doesn't accompany it.

I am analyzing a duplex near Seattle where the owners are in Bankruptcy Chapter 11 for multiple properties over $1.6 million in back taxes....Of course I will consult an attorney - but before I do I wanted feedback on whether to pursue any further.The asking price is way too high for it to make sense (which is part of why it's been on the market for over 135 days, so I would only offer a number that made sense).

What if the seller has open mortgages, judgments or is in Bankruptcy?

I also have a bankruptcy from 2010 due to the crash in 08.

Two of the deals I HAD to buy (the first 12 unit we purchased out of bankruptcy court, poured some money into it and now it is a cash cow - cashflows at 42% occupancy. 

They filed multiple bankruptcies without following through on every eve of my trial date.

Dreams and starry eyes.You will find many even on this forum that still lack the discipline and knowledge to operate a business.Also although many are comfortable in the belief that real estate investing is low risk bankruptcies occur every day from bad choices or bad luck.