Do I have a chance?

What is the name of your state? Illinois
Two years ago my husband and I filed bankruptcy both on a business and personally. We had just recently bought a home on contract. We had not paid our payment for exactly 30 days, and were in the process of moving out and filing bankruptcy when the people we bought the home from entered the home, changed the locks, filed a phony police report (stating we had stolen property from them, ie. light fixtures we had taken down to replace) and refused to return my belongings inside the home. Some of them were worth money, furniture, Christmas decorations, etc., and many of them were of emotional value, my daughters baby pictures, my wedding album, momentos, etc. My question is, do I have a chance in court? Granted we were wrong by not paying that month, but didn't they have to file papers to enter and seize the property? They knew nothing about our impending bankruptcy. This has caused me both emotional and financial loss, and I feel we weren't protected. The police would do nothing, because of their phony report. Any help in this matter would be appreciated.

File suit against them in small claims court. A police report won't hurt you either.

Although you were late with the rent, they are going to find out very quickly that both parties are wrong.

but...

My husband doesn't want to "rock the boat" by going after this, I do though. My main concern right now is that I have written a letter to the woman (it isn't mean or vindictive, just telling her what we went through and that her actions were wrong, cruel and petty). I guess my hope is that through some shred of decency she didn't destroy my most beloved possesions, things no court can recoupe for me, and will find it in her heart to return those items. Is there any recourse she can take on me, because we didn't pay our payment (it wasn't rent, we had it notorized w/ the city, we pretty much owned the home, they simply got it instead of a bank if we faulted).

If your contract and paperwork was in order, then you have a great suit. They did not serve you with foreclosure or eviction(even if they claim you were renting) papers. If your paperwork is in order I don't know why the police would not help you.

Sorry, all, but with the writers statement "We had just recently bought a home on contract", I have to disagree on the issues and validity of a lawsuit. Simply, we have NO idea what provisions this PURCHASE contract gave the seller in the event of the buyers breach. And no, this is NOT a rental or eviction issue!!

I realize it's not a rent or eviction issue. I put that in there because this is an owner financing situation. You, nor I know what the owner is really claiming since the OP didn't insert what the contract said. That is why I stated if the contract and paperwork was in order.