I am sorry to hear of your situation. However, there is no undue hardship available that will forgive a loan, or avoid bankruptcy. If there is a loan due that your husband is responsible for, along with another person, there is no way for the entire loan to be discharged unless both parties file bankruptcy. You are allowed up to a $75,000.00 exemption for real property, so if the amount of your equity falls below that it is exempt from the bankruptcy and they cannot take it.
You shoul consider consulting with an attorney, the bankruptcy process can be very overwhelming and complicated and they will fill out all the forms with input from you and your husband. It would definitely help with the pressure of your situation.
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