Do I reopen the case and give the money to the trustee?

You really should consult with another bankruptcy lawyer about this, because it does sound like you might have some liability but it is dependent upon all the facts which must be examined carefully. Certainly if you contact the trustee, s/he will tell you they want the money.

Let the trustee know that money is available relating to a loss you sustained before filing the bankruptcy. I suggest putting this communication in writing. The trustee can then reopen your bankruptcy and will take these funds to pay your creditors.

Pay an experienced BK lawyer for two hours of their time to review everything. I would want to review your BK file before rendering an opinion. Any lawyer worth their salt will want to do the same.

You should sit down with an attorney to discuss this since the funds are technically property of the estate. The answer to your question will depend on whether you disclosed your interest in the franchise and/or your responses to questions in the Statement of Financial Affairs. It is possible that some of the funds can either be exempted or the trustee may have disclosed any interest in those funds. Only a review of your filings with the bankruptcy court can answer any of the questions this situation brings up.

Your lawyer is not doing his//her job. Write the trustee, giving your case number and the key dates. Tell him or her just what happened. I think s/he will say that you had the right to the money at the time you filed the case and that therefore the non-exempt part of the money belongs to the bankruptcy estate, not him. OR...get yourself a more conscientious lawyer.

The SCC, the Society of Cosmetic Chemists made them disgorge the franchise fees? Or did you mean the SEC, the Securities and Exchange Commission? Your recovery of the franchise fee is called a newly discovered asset in bankruptcy. You are required to notify the trustee when you learn of an asset which you owned at the time of filing but were unaware of. The trustee will then decide whether to reopen the case or not. If you don't notify the trustee, it is considered to be bankruptcy fraud and the court could revoke your discharge. If you're lawyer won't return phone calls, etc., I suggest you contact either the local bar association or the US trustee's office and tell them that your attorney will not return your phone calls and you have an urgent matter you need to discuss with the attorney. This tends to get the attorney's attention.