What if an Audit of My Chapter 13 Case Finds a Material Misstatement?
By Peter Orville, Attorney at Law on Nov 3, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, U.S. Trustee Audits
If your Chapter 13 case has been selected for an audit and the auditor finds a material misstatement, the following enforcement options are available to the United States Trustee’s Office:
1) Motion to dismiss for cause pursuant to section 1307(c)
2) Objection to confirmation pursuant to section 1325(a)(1),(3),(4), or (7).
3) Information sent to the Chapter 13 Trustee pursuant to section 1325(b).
4) Requiring a modification pursuant to section 1329(a)
5) Revocation of a confirmed plan for fraud pursuant to section 1330(a).
6) Requiring that schedules be amended
7) Action taken against debtor’s attorney
Chapter 13 debtors whose cases are found to have a material misstatement often have more ability to achieve a positive result than do Chapter 7 debtors because the United States Trustee’s Office will frequently allow you to amend your plan to correct the problem. A typical amended plan offers to pay more to the trustee over the life of the plan and increases the percentage paid to unsecured creditors.
If you liked that post, then try these...
The "Check is in the Mail" Case by Wendell Sherk, Missouri Attorney
More on Mortgage Company Abuses by Jonathan Ginsberg, Atlanta Bankruptcy Attorney
Bankruptcy Basics: Chapter 7--The New Rule Is 8 Years! by Karen Oakes, Southern Oregon Bankruptcy Attorney
Exemptions and Unknown Values by L. Jed Berliner, Springfield Bankruptcy Attorney
Same Sex Marriages and Bankruptcy by L. Jed Berliner, Springfield Bankruptcy Attorney
You must be logged in to post a comment.