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If there is some evidence to show that the city was put on notice that the home was included in the BK before the city demolished it, then you have a case to hold the city in contempt of a federal court order. This can be pursued by a bankruptcy lawyer who can try to reopen your BK case and file an adversary proceeding against the city.
Normally a city has governmental immunity that protects them from lawsuits. However there are exceptions where the city has waived immunity and allows itself to be sued. You will need to hire a lawyer in the town where the demolished home was located to sue the city. There type of lawyers specialize in municipal litigation, civil rights litigation and civil litigation or real estate litigation.
Most of the lawyers you will find that do municipal litigation defend the city. So you may have to ask an organization for a referral to find a plaintiff's lawyer that does this type of work.
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