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Dreaded random audit survivors out there?

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    Dreaded random audit survivors out there?

    I have decided to keep going on the Ch. 7 after our 341 hearing was continued despite the overwhelming burden of proof to contend that we are eligible for Ch. 7 and to dispute the presumption of abuse because of our high income and massive debt. I have gathered the 3" thick pile of documents requested by the UST, the most exhausting thing I have ever done, but everything is documented. The paralegal did all of the calculations for me using a computer program and I really didn't understand the means test or schedules I & J at all when the petition was prepared. I had no idea that I would have to defend those numbers on my own!

    As I went through everything I feel like I have a pretty good grasp on all of the calculations, but pretty much every number the UST asked about needed to be changed. There was no attempt to inflate numbers in our favor, just errors in calculation and way too much estimating on the part of the paralegal. Is this grounds for dismissal?

    Has anyone been through this type of audit, had the second hearing go well and see the light of day in the form of a discharge?

    #2
    I can't help you with the audit, but I wanted to tell you I am glad you're going ahead. You made a good choice. Fight for what you know is right. Take that stack of papers with you the trustee will be overwhelmed! Show them you have proof of your expenses, it will definitely help. I have been keeping up with your post and am wishing you the best.
    Filed Chapter 7 June 4 ~ 341 July 20 ~Last day of objections Sept 18~Discharged/Closed Sept 21

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      #3
      Good luck!
      Just come up with as many receipts you can to justify the numbers on your petition!
      And maybe find some expenses NOT listed on your petition that you can add in to make it even higher...
      There is a list somewhere on the web - linked to in a Sticky here somewhere I think - that lists expenses and there are many things on there the average person might not think about. Go through that list and look for expenses you forgot to list. so even if the Trustee says you inflated some numbers, you can add in other legitimate expenses to bring them back up...
      <<I am NOT an attorney, my comments are anecdotal only. Contact an attorney for advice>>
      FINALLY DISCHARGED 92 DAYS AFTER THE 341! A NEW START!!!

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        #4
        Thanks for the replies and support. PaKettle, you are right... I did find as many understated expenses as overstated expenses and the recalculation of these numbers actually brought the net income down (that is, made it an even larger negative number) on both schedule J and the means test. I was amazed when I added up the receipts for our medical bills... much larger than I thought. No wonder we're broke! I am sure there will be more questioning, but at least I'm confident about my numbers now.

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