Can they still hold her / us liable for it and can we still sell the property?

You can notify the other attorney that her mortgage debt was discharged in the BR-and prove it by sending him or her a copy of the schedules of debts she filed, and a copy of her Discharge.

I'm sorry your question is not very clear. Assuming you're talking about your primary residence at the time your wife filed for bankruptcy if it was included in the chapter 7 she would have been able to exempt a certain amount of equity in the home at the time as long as her payments were current or she cured any default. I suggest you consult with a bankruptcy attorney.

Your wife is not personally liable on the loan but the loan is probably still a lien on the property. And since no payments have been made for 14 years, the amount of the loan is likely more than the value of the property.

If your wife took out a loan on IT meaning she gave the lender a mortgage, the mortgage is a lien on the property that is not affected by a chapter 7 bankruptcy. While your wife does not owe the mortgage debt herself, the house does owe this debt. Changing her name, changing title to the property does not remove a mortgage. If this debt has not been paid in many years, it has likely grown with interest and late charges to an astronomical debt. Perhaps this debt can be settled for less than what is owed on the property, or perhaps not. Sounds like someone made an incorrect assumption.