Credit card and personal loan default arbitration

Hello, I have taken personal loans from 2 banks amounting to 25 lakhs, also have credit card dues for 3 lakh. I haven't paid my dues since last 6 months as i quite from my job, took care for stage 4 cancer father and his demise afterwards. Now I'm mentally completely lost in grief and also in loan/credit card dues. Recently one bank told me there will be arbitration to recover my dues on personal loan and credit card. I do not have any house or land or other properties in my name but may father/mother and brother/sisters do have house and plots in their name. I've been told by my mother, father(when he was alive 2 months back) my sister and brother that bank person on their visit have told them they will put forward arbitration and can confiscate house. I personally do not have anything on my name, although after father's demise some of his property will get my name as I'm also heir to his property. So my question is, why banks are telling that for my loan/credit card dues my mother/father/brother/sisters house will be confiscated? Does this really happens? I have not of funds, no mutual funds, no saving, no vehicle, not even this phone in my name now, I'm living at relatives friends because of this recovery trauma.