U.S. Trustee Program Has Suspended Random Bankruptcy Audits
The U.S. Trustee recently announced that it will suspend its random bankruptcy audits due to budget constraints.
On March 30, 2013, the United States Trustee's Office announced that it will suspend indefinitely its audit of randomly selected bankrutpcy cases due to budget constraints. The Bankruptcy Code authorizes the U.S. Trustee to randomly select a certain number or Chapter 7 and Chapter 13 bankruptcy cases each year for audit. The audits were conducted by independent firms who looked for "material misstatements" on the petitions and schedules. In the past few years, the U.S. Trustee had been conducting fewer and fewer audits, also due to budget constraints.
Be aware, however, that if your bankruptcy petition or schedule has "red flags" indicating fraud or misstatements, your case trustee is likely to inquire or investigate further.