Suspension of USTP auditing due to covid?

[bornfree2]

Ran across this

IMPORTANT NOTICE REGARDING DEBTOR AUDITS

March 25, 2020


As authorized in section 603(a) of Public Law 109-8, the USTP established procedures for independent audit firms to audit petitions, schedules, and other information in consumer bankruptcy cases. Pursuant to 28 U.S.C. § 586(f), the USTP contracted with independent accounting firms to perform audits in cases designated by the USTP.

Due to ongoing public health concerns associated with COVID-19, effective immediately, the USTP is suspending its designation of new individual chapter 7 and chapter 13 cases subject to audit for an indefinite period.

https://www.justice.gov/ust/debtor-audit-information

Anyone find any information to the contrary?

[justbroke]

I didn't know that they were doing this, but they have never ever met the numbers required by the bankruptcy law (BAPCPA 2005). I think they were supposed to audit 2.5% of cases, and they never even reached 1%.

If you obtained that information from the Executive Office of the United State Trustee's website, then that is the most accurate information that you can obtain.

Please realize that the audit which they talk about is that which is required by law. This particular audit is a random sampling of cases to comply with the bankruptcy code and to help ensure the integrity of the program. However, its primary purpose is not really integrity. For integrity the Trustees and the UST can audit any case they so choose and subject the debtor to a Rule 2004 examination.

So the UST will still audit cases where there are inconsistencies. This only applies to the random "program" audit.

[bornfree2]

Ahh.. always the fine print