Question BK Abuse?

[lina]

I've got a letter from US Department of Justice stating they are investigate BK filings for potential abuse, asking for 2 years tax return. Im nervious. Any suggestions? Thanks

[blockhead]

I've got a letter from US Department of Justice stating they are investigate BK filings for potential abuse, asking for 2 years tax return. Im nervious. Any suggestions? Thanks

I had one of those too. They asked me for bank statements, cancelled checks, affidavit, leases, auto agreements, etc etc - one box load almost - they checked it out and a couple months later told my atty it all checked out. It was basically an audit but nothing showed up on Pacer during the whole thing.

Mine started out ""The Office of the United States Trustee has reviewed the Debtor's Schedules filed in this case and is evaluating whether cause exsists under 11.USC707 for dismissal or under 11.USC727 to deny the Debtor's discharge. The debtor is hereby requested to surrender to the U.S. Trustee the following documents..."

[lina]

Thanks, Blockhead, my case hearing in a couple weeks and Ive got this letter couple days ago, dont' think they will be ready for me in 2 weeks?

[HHM]

Sounds like you have been selected for a random Audit (about 1 in 250 cases). Just send what they ask. Unless you did actually abuse the BK system, then you shouldn't have anything to worry about.

[lina]

To: HHM

No, i have not did anything wrong.....

[ryan]

So, can I assume this type of random audit delays your in-progress BK for months?

[HHM]

So, can I assume this type of random audit delays your in-progress BK for months?

Normally, no. So long as you supply the requested information when requested, the review normally doesn't require the UST to extend the objection deadline.

[gmk]

We had an uneventful 341. Next day there is a notice that the UST has found that we are "presumed to be in abuse." A few hours later another doc is filed from the UST saying that a statement was filed presuming abuse but after review, etc. a dismissal under Sec 707-b-2 would not be appropriate. I think this is what we want to see?

Two days later another document is filed incorporating the original "presumed to be in abuse" document with a mailing to everyone on the creditor matrix. Yowch. There has been no mass mailing of the second document wherein the UST said a dismissal wouldn't be appropriate. Wassup with this? Is this just typical formality stuff?