Question About Audits

[kornellred]

Most everyone is at least aware of the US Trustee's mandated independent audits of BK filings. Budgetary restrictions shut the program down for a few months in early 2008, but the audits have resumed at a frequency of 1 audit per 1000 filings on a random basis. Originally, the frequency was 1 audit per 250 filings.

Recently, I was reading that when and if bankruptcy audits occur, they occur within two weeks of the filing date (I do not remember just where I read this). I was wondering if anyone can verify this. I am 18 months into a 60 month Chapter 13. Besides being a poor record keeper, my expenses prior to filing were mostly on a cash basis - no rental lease, no utilities to pay, transportation expenses paid in cash, etc. So there would be no way I could substantiate my expenses for an independent auditor other than with information my BK attorney has in my case file. That excuse might not be acceptable to an independent auditor.

[justbroke]

I don't believe they are auditing Chapter 13 plans. When they had suspended the program last year, the U.S. Trustee's office indicated that it was already a lot of work to audit the Chapter 7 cases (which have a much short pendency period).

This audit is performed at the beginning of the case, to check paperwork. I don't see whre they could or even would perform them months after the fact.