The seller would be better off selling the property after bankruptcy is final, unless they are risk of losing the property before bankruptcy is finalized. If it is held as joint tenancy then it could be the father and creditors that end up owning the house which complicates things. I guess it depends on how much equity they have and if the father still wants to live there. If there is little equity then I doubt the creditors would be interested in owning part of it.