If your dad is named on the deed then this may represent as asset. However he only owns a third - with your gran and uncle. It depends where the property is and who is living in it at present but it is an asset nevertheless. If your father has to realise funds or pay off debts then he has an asset that he can use - the property in question. It look like the property might have to be re-mortgaged so that the value is realised and your fathers name removed from the deed. This would involve the other two parties raising the equivalent of the property value to pay off your dad.

If this is a property that can not be divided, then nothing hapens. The bankruptcy court can not force 2 other parties not involved in a bankruptcy to sell their property. The trustee will most likely abandon trying to go after this because it would be more hassle than it is worth.

But, he may also tell your parents that if they sell the property down the line, they will have to report this income to the trustee, regardless of how many years go by, since it is an asset of the estate.

Right now nothing will hapen.