Legal Question in Bankruptcy in Florida

It is not clear if your husband intends to file bankruptcy for himself or for his company. If he intends to file bankruptcy for the company, then the line of credit would not be included in the bankruptcy because the line of credit is not a debt that the company owes. You and your husband owe the debt to the bank that issued the line of credit, so it is a personal debt, not the company's debt.

If your husband intends to file bankruptcy personally, then it is possible that the line of credit could be included. The first question is whether both you and your husband are the borrowers on the line of credit. If you both are, then you would be obligated to pay the line of credit back even if your husband's obligation to pay it back is wiped out by the bankruptcy.

If the value of your home is less than the amount owed on the first mortgage, then it is possible to wipe out the line of credit by filing a chapter 13 bankruptcy. However, in a chapter 13 bankruptcy, one has to pay back a portion of one's debts over a 3 - 5 year period. Again, if both you and your husband are the borrowers for the line of credit, then you would both have to go into bankruptcy in order to have the possibility of canceling this debt.

Bankruptcies are complicated. We offer a free initial consultation, and would be happy to discuss the situation with you.