Bankruptcy question husband only filing, is home equity safe?

The answer depends on the amount of the homestead exemption allowed in Indiana (it varies by state). The exemption for an individual would have to be large enough to protect half the equity. The reason for that is that the non-filing spouse cannot be harmed. So, if the trustee were to sell the house, he would have to pay the spouse her full share. Note that the exemption amount does not necessarily have to be the full $50,000 because the trustee would need to take into account realtor fees, trustee fees, and capital gains in determining whether a sale would result in any excess proceeds available to be paid to creditors. You should talk to an Indiana bankruptcy attorney to find out the available exemptions. Many attorneys will give a free initial consultation.