Letter from US Trustee - does this mean I'm getting "audited"???

[DontBother]

Dear Ms Attorney,

One of the duties of the United States Trustee is to investigate bankruptcy filings for potential abuse. In connection with our review of your client's Chapter 7 bankruptcy filing, please respond to the following inquiries and/or requests:

1. Please provide copies of pay stubs for the period May 1, 2007 - December 15, 2007 for both debtors.

2. Please provide copies of 2006 income tax returns for debtors.

Please provide your response by 12/28/07.

So does this mean that I'm officially getting "audited" by the US Trustee, or is just a routine inquiry?

My standard expenses are "by the book" according to the IRS standards (we're able to file chapter 7 due to high payments on secured debts). But our income is barely under $100,000/yr for a family of 4 in California. So are they suspicious because of the higher than median income?

We're not doing anything shady, so I hope this goes without incident. Of the items requested by the UST, my attorney has all but our pay stubs from the 2 most recent pay checks.

[DontBother]

Also, is this one of the "random" audits that the UST does, or is it something more???

[ejny65]

This is something that I worry about too. I dont have the answer but from what I have heard many cases are over the median. maybe they just need the documents, and thats all. Do they audit?? as in IRS audits???

[ohwell]

I think you are notified you are chosen for an audit prior to your 341 hearing.

Here is a helpful link, and other info as well.

http://www.************************/...nkruptcy-case/

[DontBother]

I think you are notified you are chosen for an audit prior to your 341 hearing.

Here is a helpful link, and other info as well.

http://www.************************/...nkruptcy-case/

Yeah, I read that same info on another site also... But in my letter, it doesn't mention "audit", nor does it mention any "audit firm". And the letter isn't giving me 21 day to complete it either; it was dated yesterday, and it's requiring the info by 12/28 (which is also the date of my 341).

[ohwell]

I just reread your post, could have answered you better.
We provided along with our petition our 2006 return and our 6 months paystubs. Our atty had that filed with our petition.
I thought that was standard, if you didn't include it, its hardly an audit. They want to see that. We are high income and secured debt filers and were ch 7 no asset.

I assumed everyone did this. Do you have an atty? They handed our tax return back at the meeting.

Maybe its just the district, are you in Central District? We are in Ca, central district.

[DivorceRuinedMe]

I AM being audited and it specifically stated in the letter that i got that I was being audited according to the bankruptcy code and to supply my documents directly to the audit firm. The audit goes on independently of the bankruptcy. I can't say for sure but it doesn't sound like the type of random audit like I'm going through. Although, I think I read somewhere that the US trustee does audit cases. Have you asked your attorney?

[coma]

I got a letter prior to my 341 asking for pay stubs for 2 pay periods, 2 years worth of taxes, bank statements for three months, and copies of titles or registrations for any vehicles. My letter made no mention of the UST, but all the trustee wanted was to look to see if we had anything worth taking. This may just be a form letter that everyone gets. I wouldn't worry too much about it. That isn't much to have to give, compared to some of the lists of items that people were asked to give.

[BKer]

We received a similar letter after my 341 meeting. My attorney told me it was pretty routine for people in my income bracket (a little over $100K/yr). We provided the information immediately.

I don't know if it is related or not, but at day 89, we received a motion to dismiss by the US Trustee based on the requested information we provided. We told our attorney that we wanted the evidence that supported the Motion to Dismiss. After reviewing it, my wife found a couple math errors. We pointed the errors out to the US Trustee and instead of going before the court, the US Trustee withdrew the motion to dismiss and our Ch 7 BK was immediately discharged and closed on the same day.

[BKOnce]

New BK law standards:

1. High income filers in C7 -->> more likely to be audit

2. High-income filer in C13 -->> less likely.

[DontBother]

Yeah but what I'm trying to find out is, am I being audited?? Is that what the letter is about? I left a message for my attorney, but haven't heard back yet.

From what everyone has said, it doesn't appear to be an "audit".

Hopefully I'll provide the info requested, and I'll never hear from them again.

[ejny65]

New BK law standards:

1. High income filers in C7 -->> more likely to be audit

2. High-income filer in C13 -->> less likely.

How much of a higher income are we talking here? if median in my state is $67000 and my income is almost 70K. Would it still apply?

[JollyGG]

I was not audited but I did get a letter from the US trustee before the 341 meeting. There were a few things he needed clarified before he could make the "no abuse" determination. We emailed back (our questions were in an email), plus answered the same questions at the 341 and that was it.

[FreshLikeADaisy]

Yeah but what I'm trying to find out is, am I being audited?? Is that what the letter is about? I left a message for my attorney, but haven't heard back yet.

From what everyone has said, it doesn't appear to be an "audit".

Hopefully I'll provide the info requested, and I'll never hear from them again.

When DivorceRuinedMe got audited, she posted some of the text of the letter she received, which used the specific word "audit" and referenced the section of the law authorizing both random and targeted bk audits. Your honestly sounds like nothing more than a request for further info. Also, when you get audited, they go a good deal deeper than the last 6 mos of pay stubs, etc.

I'm no attorney, but that doesn't sound anything like an audit notice. I think you're fine.

P.S. Here's the link to the thread that had some of the text of an actual audit letter posted: http://www.bkforum.com/showthread.php?t=19635

[PaKettle]

We received a similar letter after my 341 meeting. My attorney told me it was pretty routine for people in my income bracket (a little over $100K/yr). We provided the information immediately.

I don't know if it is related or not, but at day 89, we received a motion to dismiss by the US Trustee based on the requested information we provided. We told our attorney that we wanted the evidence that supported the Motion to Dismiss. After reviewing it, my wife found a couple math errors. We pointed the errors out to the US Trustee and instead of going before the court, the US Trustee withdrew the motion to dismiss and our Ch 7 BK was immediately discharged and closed on the same day.

Wow! Smart!
Good for you for not just accepting it but demanding to see the evidence!