Under the Lady Bird Deed, can they seize the money my sister who filed bankruptcy owes her creditors?

Because of your reference to a Lady Bird Deed, which is a document unknown to Wisconsin law, I think you need to refer to a lawyer acquainted with the law of your own state, as well as (federal) bankruptcy law. Good Luck.

If property becomes part of a bankruptcy estate, the bankruptcy trustee can sell only the actual interest that someone has in property. So if your sister is entitled to a 20% interest in property during the 180 period, the Trustee can take 20% of the value of the property through a sale, or more realistically, hit up the co-owners to cash out your sister?s property interest.

Any inheritance received with 180 days of filing can be taken by a bankrupt's Trustee and used to pay the Trustee and creditors. The Trustee can only take your sister's portion. Since the property would be owned by all the siblings, the Trustee would need to first force the sale of the house then take the bankrupt sibling's portion of the house. Trustees like assets that are readily convertible to cash and might ignore one which is this complex unless the value is high. Since the father still controls the house under the Lady Bird deed, he might be able to change the terms so the sister's portion goes into a trust and isn't inherited until after the 180 days.

I would have to review the documentation for a definitive action but generally, and as a matter of principal, creditors can only take what your sister would have been entitled to. The devil will be in the details and should be addressed between YOUR attorney and her bankruptcy attorney.