01 Nov Bankruptcy: What is the Time Line for an Audit of My Case?
If you have filed a bankruptcy petition and you are lucky enough to be chosen for an audit, you should know the time line that the audit process will follow.
1. A non-business Chapter 7 or 13 bankruptcy case is selected for audit within 10 days after the date the bankruptcy petition was filed. An audit firm is immediately assigned to the case.
2. Debtors attorney and debtors who have no attorney (pro se debtors) are notified that the case was selected for audit, and a description of the material the audit firm needs to receive. The debtor/attorney is given 21 days to get the requested information to the audit firm.
3. The audit firm is then given 21 days to complete the audit and issue a report.
4. The audit firm then files the audit report or a Report of No Audit with the Court.
5. The audit firm is given 70 days from the selection of the case for audit to complete the report. To date the average time to complete the audit has been about 59 days.
In many cases, your lawyer will already have most of the documents requested by the audit firm. Your lawyer is generally best equipped to communicate and send information to the audit firm. Your cooperation and quick response to your lawyer’s requests for documentation is critical. In those cases where you or your lawyer need more time, it is very important to ask the auditors for the additional time needed.
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