Chapter 13 vs. Deed in Lieu of Foreclosure

I cannot decide between a Chapter 13 or a deed in lieu of foreclosure? Which should I choose?

I am in 4 months default of my mortgage loan modification and had met with an attorney to initiate a Chapter 13 petition on my behalf. I've paid him the first 2 initial payments to total around $400. A week after our first meeting, my mortgage holder (SPS) sent me a letter offering me the options of a Short Sale or a Deed in Lieu of Foreclosure. I faxed this letter over to my attorney and asked him if it was something we needed to discuss. He assured me that it was "nothing" and filed my petition the following week. Since then, I have investigated the Deed in Lieu option under the HAFA program, under which SPS is offering me the option. I called to discuss it with them, as a friend who owns a number of properties pointed out that they will very likely come after me for the $50K deficit between the mortgage balance and the property value. While SPS assured me that this amount would be written off, they did let me know I would be receiving the 1099C at the end of the tax year. I've since looked into the debt forgiveness rules for the state of VA and am not sure VA also allows the taxes on the forgiven amount to be written off, due to it being my primary property or even the fact that I have been declared insolvent, thus the Chapter 13 petition? Also, if VA is participating, will I be able to agree to the Deed in Lieu and cancel the Chpt. 13 petition? AND, will I be required to pay my attorney his full fee, if I do cancel the petition and go for the Deed in Lieu? Why did he not even bother to advice me that it might be the better alternative and dismiss their offer as "nothing" other than just wanting to get paid by me???