What if an Audit of My Chapter 7 Case Finds a Material Misstatement?
By Peter Orville, Attorney at Law on Nov 2, 2007 in Bankruptcy Practice and Procedure, Chapter 7 Bankruptcy, General Bankruptcy Information, U.S. Trustee Audits
If you filed a Chapter 7 bankruptcy case and your case was audited, you face a variety of sanctions if the audit firm finds a material misstatement in a Chapter 7 case. The enforcement options by the United States Trustee’s Office include the following:
1) Objection to discharge pursuant to section 727(a).
2) Complaint to revoke discharge pursuant to section 727(d).
3) Motion to dismiss case pursuant to section 707(a) or (b)
4) Turnover action for return of estate property
5) Amendment to schedules, etc.
6) Actions related to attorney conduct.
BAPCPA added sections to the law (Section 727(d)(4)(A)) allowing the revocation of a Chapter 7 debtor’s discharge if they do not satisfactorily explain a material misstatement in an audit. It also added a section (Section 727(d)(4)(B)) allowing a revocation of discharge if the debtor does not satisfactorily explain the failure to make available for inspection all necessary documents or property belonging to the debtor required for the audit.
If you liked that post, then try these...
Unsettled Provisions of BAPCPA - Don't Become a Test Case! by Jonathan Ginsberg, Atlanta Bankruptcy Attorney
Case Invoking Doctrine of Marshaling by Nicholas Ortiz, Boston Bankruptcy Attorney
Giving Away Your Money Before Filing Bankruptcy and Lying on Your Paperwork May Land You In Jail by Jill Michaux, Kansas Bankruptcy Attorney
1 Trackback(s)
You must be logged in to post a comment.