When you either voluntarily give up the house or you stop making payments (foreclosure).
YES, you can include it whether the payments are current or not.
Yes, bankruptcy covers most types of payments with the exception of federal taxes and student loans. The ultimate decision is in the hands of the bankruptcy judges and the trustees.
Absolutely not. Bankruptcy payments are repayments for debts that you incurred in the past and did not pay. There is no circumstances where these could be deductible on your income taxes.
Ususually in BK a house is either voluntarily surrendered, because it is not possible for the borrower(s) to keep up payments.. Or the buyer reaffirms the loan with the lender and works out a plan to repay missed payments. If your mortgage payments are current, I see no reason why the lender would seek foreclosure.
If you are behind in your payments and you declare bankruptcy usually you can remain in your home and continue payments. However the lender will most likely begin foreclosure since you can't afford it and you are at higher risk.
There's no maximum amount. If you can't make your payments you file bankruptcy.
Yes, you can move anywhere you want to, but if you are paying payments (Chapter 13) you are still legally obligated to make the payments.
Yes, they may.