Bankruptcy Audits

The United States Trustee’s office randomly audits at least one out of every 250 bankruptcies. In addition, there are certain things that will trigger an audit. The Department of Justice says that if your income or expenses are higher than the statistical average in your district, that will trigger an audit.

In the event you are selected for audit your attorney will receive a letter. In the letter, you will be asked to produce documents including 6 months pay stubs, 2 years tax returns, 6 months of bank account statements, divorce papers if you were divorced in the previous 3 years.

If you and your attorney were diligent in the preparation of your bankruptcy filings you should be fine.

But if you fail to pass the audit, the US Trustee’s office can recommend that the Department of Justice file a civil or criminal action against you.

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