WHAT IS A BANKRUPTCY AUDIT?
Each and every year the U.S. Trustee's Office selects a number of bankruptcy cases, either at random or based on certain red flags, on which it is going to perform an audit. The reason it does these bankruptcy audits is to detect instances of fraud and seek out debtors who have not been truthful about their income, assets or other pieces of pertinent information. Hidden assets, false or misleading statements made to the bankruptcy court, and other discrepancies are what the appointed audit firm are looking to find. You will have a much greater chance of being able to avoid a bankruptcy audit, if you are completely honest when preparing your bankruptcy petition and during your hearings. Having a bankruptcy lawyer by your side to help guide you through the bankruptcy process will also lessen your chances of either being audited, or of having your case dismissed following an audit.
If your case is chosen for an audit, your lawyer will be notified and advised as to the information and documentation which will be required. At that point, we will let you know what you can expect , prepare you for the audit and work with you closely to provide the audit firm all of the information they have requested. Should the audit firm which has been appointed by the U.S. Trustee find you submitted fraudulent or inaccurate information, it could lead to your bankruptcy case being dismissed. Should that occur, all of your debt would be reinstated and you may end up facing criminal charges.
Call our firm today!
the David McCormick Law Group is a bankruptcy law firm that has been providing individuals in and around the Virginia Beach area with legal advice and counsel for the past 17 years. We are committed to treating our clients with the compassion and respect they deserve. We realize how frustrating and frightening it may be to find yourself struggling under a mountain of unpaid debt and that is why we will do everything we can to help put your mind at ease throughout the course of the bankruptcy process.
Each of our lawyers are well-versed on bankruptcy law and we have helped countless individuals resolve their financial difficulties so they could get on living their lives, unencumbered by significant debt. If you are worried about a bankruptcy audit, call our firm to speak with a Virginia Beach bankruptcy lawyer now.