May 9, 2008As mandated in Section 603(a) of Public Law 109-8, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the United States Trustee Program (USTP) established procedures to audit petitions, schedules, and other information in consumer bankruptcy cases filed on or after October 20, 2006. Pursuant to 28 U.S.C. ยง 586(f), the USTP contracted with independent accounting firms to perform audits in cases designated by the USTP. In...
Bankruptcy Audit’s suspended
This is a bit of interesting news about the random audits performed by the Department of Justice. Previously 1 in 200 cases was audited for accuracy. These audits consisted of independent review of paystubs, tax returns, bank statements, real estate documents and other related items associated with a debtor's bankruptcy case.
From the UST website:
NOTICE REGARDING DEBTOR AUDITS ...