I have the worst luck - my case was selected for audit!

[DivorceRuinedMe]

Can my life get any more difficult right now!

I just checked pacer and this is what I see. I'm freaking out right now. Just talked to my atty's paralegal and she said not to freak out but that's not stopping me from freaking out right now!

I'm just wondering what all is involved in this audit. I am off to search the forums now.



UPDATE - I didn't find much about ppl being audited - I did read the one thread that is recent and I already gave my atty all the info so I think I'm good as far as that goes.

I just wonder what else the US trustee wants or is looking for. This is making me feel sick - like crawl under a rock and hide, want to cry my eyes out, heart pounding sick.

The worst part is that my atty didn't even know about it yet - they haven't gotten anything in the mail yet so now I have to wait until they call me to tell me what they need. I knew I shouldn't have looked at PACER - all it did was get me all worried.

PS - can a mod move this to the BK sections - I posted it under non-bk and I didn't mean to!!! DOH!

[Granny]

Sorry this happened to you. Just keep in mind

Some days you are the dog, and some days you are the fire hydrant.

[FreshLikeADaisy]

Some days you are the dog, and some days you are the fire hydrant.

Ha! I hadn't heard that one; I've always heard "Some days you're the bug, some days you're the windshield."

Div, I honestly think you're worrying too soon. I think you have a whole lot on you right now, and your panic button has become user-friendly from hitting it too many times. But I've looked into the audit thing as much as I could because I'm filing pro se and don't have an attorney to protect me, and from everything I hear there's nothing to worry about. Basically, instead of six months bank statements they may want a year or two years. They take a little closer look at your transactions. And that's about it.

Just so you know, there are two kinds of audits: the ones mandated by the U.S. Trustees that require one in every 250 bankruptcies to be examined -- not only for for fraud but to keep track of how the trustees are doing! -- and the kind that are prompted by the trustee because they suspect fraud. You got picked for a random audit, if I read your post correctly. Not a big deal. Really.

Don't fear the audit. Fear the presumption of abuse. And if you told the truth as much as you knew how I'm not hearing that you have anything to worry about. PLUS, you have an attorney to help and shield you; don't discount that.

[DivorceRuinedMe]

I don't know what type of audit it is actually. I wonder how I find out which type it is???

[FreshLikeADaisy]

If I remember correctly, the language of the letter will be the clue. If it includes the word "random" or says something like, "Your case has been selected..." I think you're good. In the cases I looked through in preparing to file, when a trustee began a fraud audit the fact that it was not random was loud and clear, and if I remember it right even the notice that the trustee filed with the court had the word "fraud" in the document title; I could see it from the docket and didn't even have to open it to know what it was. Other trustees and other courts may be slightly different, but that's what I remember seeing.

You know, if this happened to me, I'd be sweating bullets too, but Div, you have enough on you right now without "borrowing trouble." I know it's hard not to worry, but this is not a situation you can help by fretting over it. Truly. Wait for your attorney to get back to you (or call again) and proceed from there when you have actual facts to go on. Trying to foresee all the negative "what-ifs" will just make you crazy. I know that's easy for me to say, I'm not in your shoes (yet), but let me encourage you to lay this one down as much as you can: you need your energy for yourself, your babies, and your sanity. Don't waste it on a negative that hasn't even happened yet, if you can help it.

Good luck to you!

[DivorceRuinedMe]

This is the section quoted on PACER - 28 U.S.C. Sec 586 (f)(1) where it states my case was selected for audit.

Anyway to tell if it's the random one or not? I tried to see if there were any notices listed for me to know what they want but nothing is showing up there. Guess I'll just have to wait until my atty is notified in the mail. Waiting stinks!

[FreshLikeADaisy]

This is the section quoted on PACER - 28 U.S.C. Sec 586 (f)(1) where it states my case was selected for audit.

Okay, that section of law reads as follows:

(f)(1) The United States trustee for each district is authorized to contract with auditors to perform audits in cases designated by the United States trustee, in accordance with the procedures established under section 603(a) of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

I then found on the usdoj.gov website an explanation of 603(a), which says in part:

So it's either random, or because your numbers exceeded the "statistical norm" of your district (either your expenses are too high, or your income is too high).

Since you (or your attorney) would already know it if your income exceeded your area average for your household, and/or if your expenses exceeded the IRS figures (both of which are needed for the means test) I think it's safe to say it was a random audit.

Anything more -- like if you're not sure of your numbers and think maybe it's a "targeted" audit after all -- you MUST talk to your attorney about. I have NO idea what you put on your forms, or if they exceeded the average for your area. Even if you told me line by line, I wouldn't know -- I had a hard enough time doing my own. Like I said before -- the ones I saw during my research that were prompted by suspicion of fraud (not just numbers higher than average) were labeled clearly as such in the filing, and your letter apparently makes no mention of that.

[DivorceRuinedMe]

Fresh~

Thanks for answering my post and trying to make sense of it. I haven't received my letter yet - all I did was check PACER and that's where I saw it. I'm sure the atty will get my letter soon. I'm going to call on Monday and check on it if they don't get anything today. It will be a LOOOOOOOONG weekend but I'm going to try not to think about it.

I don't know if my numbers were high or not. I don't make *that* much money. I passed the means test and my numbers were all below IRS averages.

I should quit playing guessing games and just wait and see.

Anyway - thank you for trying to help. It makes me feel good to know that I always have a place to come to for help with this nightmare I call my life.

[FreshLikeADaisy]

I'm happy to do it, I'm just sorry I couldn't put your mind at ease.

But I filed today (pro se) so you never know -- I might be in your shoes before too long....