I assume that the sale of the house and the receipt of the $60,000 was made 8 months prior to the assignment in bankruptcy. If so, was the Trustee aware of this event at the time of the assignment in bankruptcy? If yes, did the Trustee discuss this matter with you and ask for an accounting of the disbursement of these funds? If the Trustee was not aware of this situation at the time of the assignment in bankruptcy, when did the Trustee learn of it?
The Trustee's concern is that 8 months prior to an assignment in bankruptcy, you had sufficient funds in which to pay off your creditors either in part or in total and I assume that you did not do this. Therefore, the Trustee has some very serious concerns that this may be a FRAUDULENT assignment in bankruptcy and has requested a court hearing before a Registrar or Judge in the Bankruptcy Court for a determination if this is a fraudulent assignment and a further direction as to what further conditions the court will impose.
There is no time limit as to when this court hearing will be held. It all depends on how busy the court is.
After the first 9 months of your bankruptcy, you are not required to report your income and expenses unless your Trustee requires it. You indicated in a previous post that your Trustee has made no further demands on you for reporting purposes.
When you are summoned to the bankruptcy court, your Trustee will present evidence of the facts of this matter to the Registrar or Judge. The Registrar or Judge will heavily cross-examine you as to what happened to the $60,000 and why you did not pay your creditors either in part or in total and will request an accounting of how these funds were disbursed. If the sale of this house and the receipt of $60,000 was not reported to the Trustee at the time of the assignment of bankruptcy, the Registrar or Judge may deem that the assignment in bankruptcy is a fraud and decide to keep you in bankruptcy for a longer period and/or make additional payments to the Trustee.
In preparation for your court appearance, I strongly suggest that you make every effort to account for the disbursement of these funds including any documentation, if possible. Be prepared for some tough questions as to why you did what you did. Your Trustee will be required to follow any conditions imposed by the Court.
----------------------------------------------------------------------------------------------------------
Educating one Consumer at a time