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If the spouse is not on the loan and not a member/owner of the business, none of that will effect her. Also, the spouse's credit will only be effected by joint accounts/debts that the couple has. Individual debts of the spouse will not effect her credit.
If he files bankruptcy, he can likely keep his property by re-affirming the mortgage with the lender. So long as he is current on his mortgage payments, this should be allowed.
My question was answered assuming that you had a mortgage on your home.
In the case where there is much equity in the home and a small loan, yes there is exposure and a possibility of losing the home because Ga. only has a $20,000 homestead exemption. This means that the remaining equity in the home (after considering the equity loan) is available to creditors to liquidate and pay on their claims.
In this case, I would recommend that he consider filing a Chapter 13 instead of a Chapter 7. This will require him to pay back his debts, but he can keep all of his property.