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We recently filed a petition to convert our Chapter 13 to a 7. We filed the new petition in April and had creditors meeting on

Toccoa, GA |
Filed under: Bankruptcy petition

May 23. Our attorney called to say that she saw our names on the docket for an apparent audit. From what I have read audits occur prior to creditors meeting. Is there a time frame when we do not have to worry about being audited?

Attorney Answers 4

Posted

Our case can be audited any time prior to a discharge. The reason a case usually gets audited before the 341 meeting is that when a Chapet 7 is initially filed, it goes straight to a pre-audit with the staff of the US Trustee's office. Since you had your case converted, it sounds like it got backed up and it may be that whoever was assigned to pre-audit your file put it off longer than usual.

The B9I form setting your 341 hearing date sets out the schedule of activities in your bankruptcy. The last date to object is clearly stated under the section marked "Deadlines." After that deadline has elapsed, you should be ok, unless you failed to disclose assets in your petition.

Hope this perspective helps!

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Posted

As was previously stated an audit can occur at any time prior to closure of the case. It has been my experience that if you were facing a audit situation you would have had contact from an attorney from the Office of the Untied States Trustee either prior to the 341 or at the 341. As an attorney representing debtors if the UST has not made an appearance by the 341 I don't expect an audit.

This answer is intended for informational and educational purposes only and should not be considered legal advice nor forming the attorney client relationship. This attorney is licensed in Kentucky

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Posted

The audit in question is a federal program that randomly audits accounts to see if there are material differences in the petition and the facts. these are conducted by a private accountant or the United States trustee.

Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.

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Posted

You should be directing your questions to your attorney, but your assumption is incorrect. In the ND Georgia audits can happen before or after the 341 meeting. Because of the time they take, they are likely to occure after. You should be discussing the details with your lawyer.

In answering questions on AVVO, the law office of Glen Ashman is not undertaking to represent you, and you should consider hiring counsel to assist you. In that answers here are based on brief and limited information there may be facts that would affect the accuracy of an answer here, so again, hiring counsel is always prudent. If you are in the area and wish to retain Mr. Ashman, you will need to call for an appointment and sign a retainer agreement.

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