May 17—As many questions were raised as answers given during a creditors meeting involving the recent bankruptcy filing of prominent local motivational speaker and entrepreneur Sally K. Carter.

The lack of clarity prompted federal bankruptcy court trustee James R. Inghram, who is reviewing assets and liabilities, to continue the case until June 1. The delay will give creditors time to prepare further inquiries.

In February, Champaign County Circuit Judge Jason Bohm ordered Carter to repay $1.8 million in unaccounted grant money to the Illinois Department of Human Resources.

The $1.8 million was awarded to Carter in 2016 so she could oversee social-welfare programs aimed at assisting lower-income children and teens.

Carter, however, never provided state bureaucrats with reports of what she did or responded to their inquiries. That led to the state attorney general's lawsuit to recover the money.

Roughly two months after Bohm's repayment order, Carter filed for bankruptcy at U.S. District Court in Urbana. The May 11 creditors meeting was conducted by telephone, with Carter answering questions from trustee Inghram and at least one skeptical creditor.

Carter, whose bankruptcy filing listed a Savoy address, reported liabilities of $640,000 and assets of $118,000. But the liabilities seem certain to exceed the filing amount because her filing characterized state debt as "unknown."

In fact, it's $1.8 million plus whatever interest has accrued.

The attorney general's office did not participate in the creditors meeting. But a lawyer from that office is expected to inquire about the $1.8 million next time.

One creditor, Bridget Kao of Champaign, did participate.

Kao briefly worked for Carter but complained she never was paid the $2,400 she was owed. Kao subsequently filed a small-claims lawsuit, winning a judgment of $8,200 to cover her pay and attorney fees. Now, without a lawyer, Kao questioned Carter about Carter's gift of a large sum — $3,000 — as a birthday present to Carter's mother.

Carter told the trustee she had made no large relatively recent cash payments to anyone because she didn't have any money. But Kao persisted in her questions, prompting Carter to say she contributed to the birthday-gift payment but did not pay it all herself. Kao was pursuing the issue when the judge adjourned the hearing.

Another issue Kao raised was Carter's relatively recent employment as a member of Urbana state Rep. Carol Ammons' staff. Carter testified she's paid $1,500 twice a month. In her bankruptcy filing, Carter said she's paid $4,200 a month.

Kao asked why Carter hadn't reported her job and salary to the small-claims court judge, as she was ordered. That's another question left unaddressed by the adjournment.

Even the issue of Carter's vehicle became confusing. Carter told the trustee the car — a 2020 Volkswagen Passat — was her mother's. Under further questioning, she said the car was bought in her husband's name, given to her to drive, then given by Carter to her mother and then given back by her mother to Carter. Eventually, the trustee ordered Carter to provide vehicle registration information.

Carter said she operated a number of local businesses under the umbrella of "Tap In Leadership Academy." Apparently, she did well, reporting a 2021 income of $241,000.

Tap In was the recipient of a $5.4 million Illinois State Board of Education grant to oversee after-school programs in Champaign school district facilities.

The program began in the 2011-'12 fiscal year. The district ended it in 2016 amid complaints about its operations and effectiveness.

In the aftermath, the state board sought repayment from Carter of $65,000. But it dropped that effort after Carter ignored letters asking for repayment. Shortly thereafter, Carter was awarded the $1.8 million state grant.