She should get her own attorney to represent her.
It appears the husbands or sister's attorney is involved
and the wife should be represented by her own attorney.
The answer given does not imply that an attorney-client relationship has been established and your best course of action is to have legal representation in this matter.
Your sister needs to hire her own attorney to represent her interests. Although the rights of creditors cannot be ignored, your sister is entitled to a level of suppport. An application should be made to court to compel a partial distribution. Having said that, if your sister is on disability, she should be entitled to needs based programs which can provide her assistance. Make sure the attorney she hires is especially versed in this area.
This response does not constitute the establishment of an attorney-client relationship. It is also not to be taken as firm legal advice as such would be contingent on a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter. The response is meant to be a helpful guide to a question in a manner which reflects the limited information provided by the inquirer.
I would need much more information than what you provided. But based on what you stated, my colleagues are correct. Your sister really needs to hire an experienced and knowledgeable attorney who can properly represent her interests.