Sunday, May 11, 2008

Bankruptcy Debtor Audits to Resume Monday

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the United States Trustee Program (USTP) established procedures to audit petitions, schedules, and other information in consumer bankruptcy cases filed on or after October 20, 2006. The USTP contracted with independent accounting firms to perform audits in cases designated by the USTP. Click here to read our original story on this issue.

In January 2008, the USTP temporarily suspended its designation of cases subject to audit for budgetary reasons. Beginning on May 12, 2008, the USTP will resume its designation of cases, although random audits will now be conducted in 1 out of 1,000 cases instead of 1 out of 250 cases.

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