My question involves bankruptcy in the state of: California

Basic background on the situation: 5+ years ago, my friend and I each took out a second on our individual homes to pay for an investment property for a 50% share each. We have nearly paid for this property in full (approx $300,000). Our personal agreement was that my friend would reimburse me in full for my share of the investment, and he would take the hit/gain on the property in five years. Last year, my friend filed for bankruptcy, but didn't declare this property in the proceedings and was able to wipe-away his second mortgage and retain the home. When we purchased this home, we didn't know about his bankruptcy that would occur three years in the future, and we had agreed to sell the home in May 2010 and part with the investment. At this time, he does not want to part with the home due to the declined value, but I need to settle the balance on my second mortgage. I feel I am only acting in accordance with our personal agreement that we put in writing.

My question: How can I best resolve this issue...would I be best to turn him into the bankruptcy courts, forcing the sale of the home, and securing what I can for the home, or should I seek a personal lawyer to try and secure my full share of the investment and keep my friend out of jail? (BTW, he is no longer my friend, but I would like to seek counsel on what is best for this man, along with my money.)