I live in Michigan . am facing the possibility of my plant being closed . I am underwater on my home mortgage and have a home equity line of credit

Whether the options of "walking away," attempting to negotiate for a loan modification, or pursuing chapter 13 bankruptcy would be the best option for your situation is a function of a number of different factors.  The most important two are generally the strength of your desire to keep your house and the amount of debt you can pay.  Chapter 13 bankruptcy is for individuals who can may payments (i.e. who have income) on a repayment plan put in place by the trustee.  In some situations, this may allow you to keep your home.  But whether it is feasible in your particular situation will depend on many things.  With regards to your last question, Michigan is one of the majority of states that allow for a "deficiency judgment," which is a judgment for the amount of the difference between what a foreclosed home is sold for and what is still owed on the loan. So if you walk away, the bank will absolutely be entitled to pursue a deficiency judgment against you.  Whether they actually do pursue this will depend on how much is owed, but if a substantial amount is owed, they likely will.  You have a number of different options in these situations, it would be beneficial for you to contact a local attorney.