Already filed chapter 7 in June 2010.

Yes, assuming your Chapter 7 case is still open, the bankruptcy trustee can initiate an "adversary proceeding" within your Chapter 7 bankruptcy case to recover the inventory proceeds for distribution to your creditors.

Yes when you file bankruptcy, your assets become part of the "bankruptcy estate". The trustee can sell and liquidate any non-exempt assets of your bankruptcy estate, which would include assets of your defunct business. The trustee is able to file a lawsuit for turnover of your bankruptcy estate assets against whomever is in possession of said assets. This will likely delay the discharge of your bankruptcy, and divorce proceedings, but other than that this seems pretty standard procedure for the trustee to take. The main thing to remember is that the trustee may only pay out to creditors what assets belong to you. So, if it is determined that only 50% of the business assets are "yours", then the trustee will only be able to pay 50% of the proceeds of the asset liquidation to your creditors, and the remaining 50% must be disbursed to the other owner.

Your bankruptcy trustee is entitled to take any and all property you own which is not eligible for an exemption under the laws of your state. You should have reviewed these laws carefully before you filed. California has two different sets of exemption provisions & you can select either CCP 703 or CCP 704. Most states post their laws on the state's website & you may wish to look at Schedule C of your bankruptcy petition to determine what property you claimed as exempt. Hope this perspective helps!