Over the past year, my wife and I had a local contractor complete a $30,000 home renovation project. Permits were obtained, materials chosen and delivered, and payments were completed in full to the contractor, who took care of all interactions with the local construction supply company. The work was completed in the springtime (approximately nine months ago). Today we were delivered a summons stating that we, and the contractor are responsible for nearly $17,000 in unpaid debt. The contractor was paid in full during the project and has since gone bankrupt. My question is, basically, where do we as paid home owners come into this litigation? I don't know why, or if we would be made to pay twice, if this is the case. Can you help advise me?

It sounds like the contractor failed to pay one or more of the subcontractors. If that's the case you may be held responsible for that money.
The question would be whether the debts were discharged in the bankruptcy.

I suggest you get an attorney.