Bankruptcy Audits Part 2 in Minneapolis, MN
If your case is selected for audit, the U.S. Trustee will select an audit firm to conduct the audit. The firm will review all the documents filed with the court looking for material misstatements of income, expenses, or assets.
When a case is selected for audit it is typically selected within 10 days of filing and assigned an audit firm. The debtor and the debtor’s attorney will be notified that the case is being audited. The debtor is expected to fully cooperate with the audit firm and provide any additional requested documents and additional information. The expectation is, that the debtor or the debtor’s attorney will supply the audit firm with the requested documentation within 21 days of notice of the audit. The debtor’s only additional costs for the audit would be copying and obtaining the requested documentation. It is expected the debtor will respond to the requests promptly and accurately.
After 21 days, the audit firm will complete its audit. The audit firm will issue a report detailing their findings. The bankruptcy court will review the finding to determine if the debtor made any material misstatements on the petition. Typically, the audit firm reviews income, expenses, and assets in the bankruptcy schedules and statements. Examples of material misstatements include hiding assets and making false statements to the bankruptcy court.
If there are questions or concerns about the information you provided on your petition, it is important to supply the audit firm with the relevant explanations. Any discovered material misstatements will require the debtor to provide evidence within a reasonable amount.
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If a case is selected for audit it is I, important to work with the audit firm to provide all the necessary documentation promptly. In the next blog, Bankruptcy Audit Part 3, I will discuss what can happen when an audit produces findings of material misstatements. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com and let us help you get your life back.
