I filed bankruptcy in 2007 and my home was broken into in 2008, why do I have to report this to my bankruptcy trustee? 

Your attorney is giving your appropriate advice.  Since you are bankrupt, any sources of income must be reported to the bankruptcy trustee.

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If your home was broken into, it may affect your assets, positively or negatively: some money or goods may have been stolen, you may have received insurance proceeds, you may (if the perp was found) have a legal claim, etc. Also, not every person is honest--particularly if assets disappeared or a large insurance claim was submitted, there would be a chance that the person declaring bankruptcy was involved in the "theft," to commit fraud on the creditors in bankruptcy by in some way putting assets out of their reach.