How is it determined if you get audited?

[a.fla]

My attorney told me to keep all the receipts we use for traveling when we move. He said that it's rare, but they could audit us. He said that it's random, but I want to make sure that he's not just trying to calm me because I'm freaking out a little. We haven't kept all of our reciepts because we didn't know we were filing until a few weeks ago. So money that was spent in August and September, we have no actual receipts for. We are filing the end of Feb or beginning of March - ish.
Thanks!

[keepmine]

Usually, high income or, 6 figure unsecured debt filers have a good chance of an audit. Other than that, it really is random. One out of every 250 cases is supposed to be auditied.

[HHM]

There are two types of audit...

But keep in mind, the US trustee tacitly reviews all cases.

What your attorney is referring to is that the US Trustee is required to audit 1/250 cases...and the selection of which case to audit is actually random.

The second type of audit (although audit is probably the wrong word) is when the US Trustee, during their tacit review, believes something is "fishy". Sometimes it's nothing, i.e. they may think some of your expenses are too high, or it could be you have a very high amount of debt relative your stated income etc. Those types of audits are audits for cause.

Honestly, I wouldn't worry about it too much.

[a.fla]

Well between the two of us, we made about $35-38k per year with a family of 4. Our debt is around $60,000-$70,000.....and we're short selling our home that we no longer live in. Does that sound fishy?

[keepmine]

When I filed, I made approximately $35K and discharged $71K worth of cc debt. No problem.

[WantToBeDebtFre]

I'm going through a random audit right now and my 341 isn't until Thursday. My attorney had to give the audit company my last six months worth of bank statements, investment accounts, and my last 2 years of tax returns. I also had to have an explanation of every deposit into my account over $500. I just gave him the paperwork to submit and it doesn't seem like a big deal because I have nothing to hide.

[a.fla]

How do you remember everything that was deposited into your account in two years?

[keepmine]

How do you remember everything that was deposited into your account in two years?

They didn't ask for everything-just deposits over $500. Use your check register to reconcile what the bank statements show.

[jp2861]

My attorney told me to keep all the receipts we use for traveling when we move. He said that it's rare, but they could audit us. He said that it's random, but I want to make sure that he's not just trying to calm me because I'm freaking out a little. We haven't kept all of our reciepts because we didn't know we were filing until a few weeks ago. So money that was spent in August and September, we have no actual receipts for. We are filing the end of Feb or beginning of March - ish.
Thanks!

The audit is targeted at the trustee and not so much you. The US trustee is just making sure the local trustee is in compliance and doing his/her job properly. Typical governemnt QC check, for the most part. If you're honest when filing out your paperwork it won't be a problem.

[EZDUZIT449]

An audit is determined by stats out of the ordinary for your area, such as income, debt, ect,,,Random audits are soft ware computer generated ,,according to statistics put into a computer program for each BK filing. The computer spits out an audit that looks fishy. I was an auditor at one time and this is how random audits are picked. No one in there right mind has time to go over every single case line by line looking for something fishy, no man power to do this. I remember reading how the BK audits are considered according to your areas stats and what looks out of the ordinary.

[EZDUZIT449]

Here you go

United States (in districts served by bankruptcy administrators) to conduct audits (1) of all information provided by the debtors in at least 0.4% of individual Chapter 7 and 13 cases, randomly selected, and (2)

[a.fla]

Very informative, thanks!

[SinkingFast]

How do you remember everything that was deposited into your account in two years?

For us, the anything over $500 woulda been easy. Pay checks and Rent payments were the only things over $500 for months and months and months.