What Have the Bankruptcy Audits Found?
By Peter Orville, Attorney at Law on Nov 4, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, New York
BAPCPA, the new bankruptcy law requires that random audits be conducted in at least one out of each 250 non business Chapter 7 and 13 cases. The audits began just over one year ago. In the first eight months of the audit program, 1631 audits were completed. Of those, 29% of the cases audited were found to have at least one material misstatement. 12% of the audits resulted in a Report of No Audit.
In the Northern District of New York, to date 89 audits have been completed. Of those, material misstatements were found in 15 cases, or almost 17%.
There is no indication as to the seriousness of the cases in which a material misstatement was found. Nor is there any statistical information available about what actions were taken by the United States Trustee Program in cases where there were material misstatements.
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