Back from Lawyer's,worse than we thought

[CRRAVOSA]

Did your attorney talk about bankruptcy planning with you? Under the new law timing is everything. If you are looking for another car anytime soon, this may change your means test, what about taxes are you underclaiming? Are there other expenses which you can put into the means test i.e. donations, medical expenses check online and review some means tests yourself, you know your expenses. Chapter 7 easier and less expensive. However do be aware that if your income is high the U.S. Trustee's office may audit your bankruptcy.

[miss puff]

However do be aware that if your income is high the U.S. Trustee's office may audit your bankruptcy.

Yes, and not just because your income is high. Two attorneys that we were talking with for free consults both said that in October every 225th case of BK is being audited. Kinda scary!

[FoolAndHisMoney]

Yes, and not just because your income is high. Two attorneys that we were talking with for free consults both said that in October every 225th case of BK is being audited. Kinda scary!

The UST always goes over every petition filed. I'm just wondering what more they will be looking for in October of this year. It's actually October 17th on the anniversary of BAPCPA the audits will start.

[anonymuse]

Sec. 603. Audit Procedures. Subsection (a)(1) of section 603 of the Act requires the Attorney General (for judicial districts served by United States trustees) and the Judicial Conference of the United States (for judicial districts served by bankruptcy administrators) to establish procedures to determine the accuracy, veracity, and completeness of petitions, schedules and other information filed by debtors pursuant to sections 111, 521 and 1322 of the Bankruptcy Code. Section 603(a)(1) requires the audits to be conducted in accordance with generally accepted auditing standards and performed by independent certified public accountants or independent licensed public accountants. It permits the Attorney General and the Judicial Conference to develop alternative auditing standards not later than two years after the date of enactment of this Act. Section 603(a)(2) requires these procedures to: (1) establish a method of selecting appropriate qualified contractors to perform these audits; (2) establish a method of randomly selecting cases for audit, and that a minimum of at least one case out of every 250 cases be selected for audit; (3) require audits in cases where the schedules of income and expenses reflect greater than average variances from the statistical norm for the district if they occur by reason of higher income or higher expenses than the statistical norm in which the schedules were filed; and (4) require the aggregate results of such audits, including the percentage of cases by district in which a material misstatement of income or expenditures is reported, to be made available to the public on an annual basis

[lrprn]

And worst of all, Congress in its infinite wisdom last year didn't set aside a single dollar to perform these now-mandatory-by-law audits. Estimates are that the audits will cost taxpayers up to $10 million every year and are unlikely to uncover even 1% of the very few cases that were filed fraudently anyway. These audits are a complete waste of taxpayer money and government resources. Arghghghgh! This makes me madder than a wet hen every time I think about it!

Sec. 603. Audit Procedures. Subsection (a)(1) of section 603 of the Act requires the Attorney General (for judicial districts served by United States trustees) and the Judicial Conference of the United States (for judicial districts served by bankruptcy administrators) to establish procedures to determine the accuracy, veracity, and completeness of petitions, schedules and other information filed by debtors pursuant to sections 111, 521 and 1322 of the Bankruptcy Code. Section 603(a)(1) requires the audits to be conducted in accordance with generally accepted auditing standards and performed by independent certified public accountants or independent licensed public accountants. It permits the Attorney General and the Judicial Conference to develop alternative auditing standards not later than two years after the date of enactment of this Act. Section 603(a)(2) requires these procedures to: (1) establish a method of selecting appropriate qualified contractors to perform these audits; (2) establish a method of randomly selecting cases for audit, and that a minimum of at least one case out of every 250 cases be selected for audit; (3) require audits in cases where the schedules of income and expenses reflect greater than average variances from the statistical norm for the district if they occur by reason of higher income or higher expenses than the statistical norm in which the schedules were filed; and (4) require the aggregate results of such audits, including the percentage of cases by district in which a material misstatement of income or expenditures is reported, to be made available to the public on an annual basis

[anonymuse]

And worst of all, Congress in its infinite wisdom last year didn't set aside a single dollar to perform these now-mandatory-by-law audits. Estimates are that the audits will cost taxpayers up to $10 million every year and are unlikely to uncover even 1% of the very few cases that were filed fraudently anyway. These audits are a complete waste of taxpayer money and government resources. Arghghghgh! This makes me madder than a wet hen every time I think about it!

Yet, does this surprise you from our government?