when would you be audited?

[B65]

after reading jessegirls post below, is this her original audit before her 341 or a new one? has anyone heard of a UST doing an audit just before discharge? I am a no asset under median C 7.. what are the chances?

[justbroke]

There are different types of audits.

First, there's the one required by law for the U.S. Trustee to perform on 1 in at least 250 petitions. Generally they target Chapter 7 cases, but are supposed to do Chapter 13 cases as well. You will know well before your 341 if you're one of the lucky ones to win the audit lottery.

Second, the Trustee may audit Chapter 7 cases in which the debtor has over $100K of unsecured debt. That's a generalization but there are thresholds like that for when the U.S. Trustee themselves will step in and poke around.

Other than for general cause, I don't know of any other reason to audit. Nothing stops the U.S. Trustee from selecting any particular case for audit.

[B65]

so the second reason

the high debt.... that one could occur at anytime right?

[Lajazz947]

There are different types of audits.

First, there's the one required by law for the U.S. Trustee to perform on 1 in at least 250 petitions. Generally they target Chapter 7 cases, but are supposed to do Chapter 13 cases as well. You will know well before your 341 if you're one of the lucky ones to win the audit lottery.

Second, the Trustee may audit Chapter 7 cases in which the debtor has over $100K of unsecured debt. That's a generalization but there are thresholds like that for when the U.S. Trustee themselves will step in and poke around.

Other than for general cause, I don't know of any other reason to audit. Nothing stops the U.S. Trustee from selecting any particular case for audit.

You noted "Well before the 341".

My 341 is set for next Monday 1/12/09.

I have checked pacer and have not seen anything out of order.

With a week left would I have heard anything by now?

[ansky0007]

We had our 341 on 12/22, My lawer received a letter today that he wants 2 years of tax returns, all bank statements for one year and other information. I am just so sick of all of this.

[Lajazz947]

We had our 341 on 12/22, My lawer received a letter today that he wants 2 years of tax returns, all bank statements for one year and other information. I am just so sick of all of this.

Ughhh.

Were you over the median or have any outstanding issues?

Did your 341 go smoothly?

[ansky0007]

Ughhh.

Were you over the median or have any outstanding issues?

Did your 341 go smoothly?

My lawyer thought it went well and so did I... My home is teetering on the edge of being an asset so maybe the trustee wants to go after us another way. I am just so sick and tired of all of this. We are self employeed sole prop business struggling making under the median. I dont even have an accountant since I do everything myself so maybe he wants to go line by line over everything. They want all credits and debits for a year. The trusee wants everything electronically in PDF and I only have hard copies since my bank accounts and credit cards no longer have online access so he will have to deal with around 10lbs of statements.

[jessegirl]

Do you know that the UST audit has never shown on Pacer at all..... Weird huh? Never a mention and this is first audited in Late Sept. Early Oct. Not a mention of the UST audit.

We are over the median and have over 100K debt. We are a no asset case. I have nothing. I have so savings and right now are living pay check to pay check what more do they want. BLOOD....... Right now I have a truck drivers mouth. I have been cursing like a son of a gun.....

My paralegal said that they are doing alot more in audits because some many people are filing.

[jessegirl]

And mind you our 341 was a breeze.. Lastly about 5 minutes tops. Go figure.

[justbroke]

Do you know that the UST audit has never shown on Pacer at all..... Weird huh? Never a mention and this is first audited in Late Sept. Early Oct. Not a mention of the UST audit.

We are over the median and have over 100K debt. We are a no asset case. I have nothing. I have so savings and right now are living pay check to pay check what more do they want. BLOOD....... Right now I have a truck drivers mouth. I have been cursing like a son of a gun.....

My paralegal said that they are doing alot more in audits because some many people are filing.

It's the income and amount of debt. I would be cursing too...

How do they say it... I go into a bar, and 10 minutes later, sailors come running out in disgust.

Anyhow, I feel for you. This process should be much more straightforward and they should tell you before, at or during the 341. Worse case, they should tell you within 10 days of the 341.

However, and many don't know this, the Trustee can go after a case even after it's closed for fraud or other reasons why a discharge should not have been granted. I don't recall any time limit on when the Trustee can bring the motion.

I think I'd rather be audited now, than 2 years from now and have my discharge vacated.

[SubPrimeME]

It's the income and amount of debt. I would be cursing too...

How do they say it... I go into a bar, and 10 minutes later, sailors come running out in disgust.

Anyhow, I feel for you. This process should be much more straightforward and they should tell you before, at or during the 341. Worse case, they should tell you within 10 days of the 341.

However, and many don't know this, the Trustee can go after a case even after it's closed for fraud or other reasons why a discharge should not have been granted. I don't recall any time limit on when the Trustee can bring the motion.

I think I'd rather be audited now, than 2 years from now and have my discharge vacated.

Right but how often does that occur, and if it does and you were legit then, why worry?

[justbroke]

Right but how often does that occur, and if it does and you were legit then, why worry?

The post-close motion to vacate doesn't happen that often, but it can be caught during audits which the US Trustee performs from time to time. The likelihood is less than the likelihood of having originally been audited anyhow (I say less than 1 in 1,000)

And, if you were good to go, no need to worry. It is what it is. However, something as simple as an asset showing up when your were a no-asset case... is what causes the post-close problems anyhow.

[TEW]

Audits are not done by the UST they are done by a contractor.
It is not a court proses so it will not show up in pacer

[justbroke]

Audits are not done by the UST they are done by a contractor.
It is not a court proses so it will not show up in pacer

Thanks for adding that TEW. I forgot to mention it.

[B65]

what I want to know is

if the UST has never been involved in your case at all...what are the chances of him becoming involved at day 30 post 341? no assests.