What You Should know about Bankruptcy Audits

Among the many changes of the 2005 bankruptcy reform was that addition of mandatory, random bankruptcy audits.  Most individuals who file for bankruptcy will not be audited.  However the Code revisions mandate that one out of ever y 250 non-business filers will be audited.  There are some key things to note about bankruptcy audits.

1)      The audit is not done in stealth.  Debtors are notified that an audit is being conducted and have the option of relaying all communications through their attorney.

2)      Your bankruptcy will not be audited by the court.  A private auditing firm will be retained in order to conduct an audit.

3)      The auditor is looking for any material misrepresentations.  As always, it is imperative to be as honest and thorough as possible when completing your documents and communicating with your attorney.

The word audit can be a scary thing, however with competent counsel a potential audit should go as smoothly as possible. The Fears | Nachawati Law Firm is knowledgeable in bankruptcy and available to handle your needs.