If my business is incorporated-why am I being held personally liable for much of the debt?

Your husband is personally responsible for the debts he guaranteed. The others are barred by the corporate veil which protects him against personal liability. One solution may be to file BR for the business before considering filing personal BR. The other issue is whether the BR trustee would insist on filing a Chapter 13 which requires payment over time rather than Chapter 7 which wipes out all debt (but limits what assets you keep). You need to find out what assets (home?) are protected in IL filings. Good luck. By the way, I am on your side on this one since I do not see why he needs to pay off debts on a closed business with home equity.
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LEGAL DISCLAIMER
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.

The personal guarantees mean that your family may be impacted and, as such, one consideration is a bankruptcy filing. The scope of this space does not afford an opportunity to assess the situation and advise you. I recommend you assemble for legal consultation: (1) your income information for November through May, including wages and unemployment during that period; (2) all your bills (several months' copies neatly assembled); (3) last four years' tax returns; (4) a credit report; and (5) other information that may apply, such as copies of lawsuits. Set up an appointment at your earliest convenience to afford the most opportunity in which to be advised about your best course.