I was summoned for an adversary proceeding.

I have been summoned to an adversary proceeding on terms of 'fraudulent transfers'. My brother in law was the person filing for bankruptcy. In his discussion with his attorney, he told them that he had paid me back on a loan of $7000 that I had lent out to him during the previous year. It was not one lump sum that I loaned, but it was sporadic throughout the year. He had paid me back with his income taxes this year (March 2013). And he filed for bankruptcy in May 2013. I understand through the summons, that they want the $7000 to settle any of his debts. But I have no part in his filing for bankruptcy. And I've already used the money for personal uses. So as of right now, I do not have the $7000. Is there a way to clear these charges against me? I was not aware that they were going to file for bankruptcy. When I loaned him money, I was only aware that he was going through a tough time with gambling and other family affairs. I would like to know if I even stand a chance in court? And at the end of the day, could the judge rule in favor of the plaintiff and take away any properties or assets to make up for the $7000? I'm at a lost of how to proceed. Any feedback would be greatly appreciated.
Asked Jul 16, 2013

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