Even if they balk, it exercises your creative muscles. 

There is only required declarations of such, which doing it at bank with banker clears that item. 

Banks use your departure residence rental income declared on Sch E of your tax returns, so the 2 units will come from the Sch E and the unit you move out, banks use 75% of the lease.

What happens if you sue, win, and then they declare BK?

This entity also declares the rental income and all of the expenses such as mortgage interest, property tax, repairs and maintenance, etc.  

THIS IS YOUR STARTING POINT.Make sure you understand  the 1031 timings (45 days to declare target and 180 to COE), line up as much as possible, get the accommodator onboard and pull the trigger.I ran into an extortionist seller and he almost sunk my 1031, but that kind of thing is rare (whew)! 

If they're already charged off, why would you declare bankruptcy?

I'd also think how you declared the expenses would have a lot to do with how the return was initially viewed.

Getting a copy of the seller's previous 3 years' tax returns where he/she declares their revenues and expenses to the IRS, and3.

. ;)PS - it appears I've declared myself a landlord.