You are responsible for he HELOC loan and will be able to go after you for the money lent. Bankruptcy may releive the need to repay, but will hit your credit for 10 years and limit your ability to purchase another home. Filling bankruptcy will affect the interest rate you will be paying on other types of loans until cleared on the credit report. A bankruptcy would outline the differt options and requirements. It sounds like you are trying to file a chapter 7 which will discharge the debt and not a chapter 13 where the debt needs to be repaid. If filing chapter 7 there are some step an attorney will have to take your through to see if you meet the minium requirements.