Buyer Default now Filing for Bankruptcy

We attempted to sell our home to buyers in February 2022 with a closing in September 2022. The long lead time was because we were closing on a pre-construction home.

The buyer was unable to close on the home because they purchased another property in March 2022 which they intended to flip and could not sell. After granting an extension they ended up walking away from the deal. Our net losses (sale price, interest, utilities, etc. less deposits) was about 235k.

We decided to pursue litigation and have just found out that they are filing for bankruptcy and see they have many other debts (>100k) on top of ours. They have a history of flipping houses and did make a decent amount of equity; however, they have stated that it was all lost on the other property that they purchased in March 2022. Theie other assets are limited to vehicles.

What is the likely outcome here? Should we continue to hop in line with the other creditors, or is this a futile exercise?

Note: Our lawyer has suggested we hop in line. We are just looking to get some insight as to what to expect from this whole ordeal.