What to Do If You Are Selected for a Bankruptcy Audit

Bankruptcy can be scary enough, but often, another stress is added to the bankruptcy process. This additional stress is known as a bankruptcy audit. It does not affect all bankruptcy filers, but it certainly could affect you. Whether you are going through the bankruptcy process and have been selected for an audit, or you are simply wondering about the bankruptcy audit process, keep reading below to learn what those who are being audited have to do.

Information About What a Bankruptcy Audit Is

Once you’ve filed for bankruptcy, you could potentially be chosen for an audit. Your lawyer will probably have all items on hand to complete the audit, but some people who have no attorney will have to go through the process alone. This means that about one to two weeks after you have filed a bankruptcy form package, an audit firm might be assigned to your case. You will be told very soon about this process, and so will your attorney if you have one.

These audits are usually for Chapter 13 or Chapter 7 cases. You really do not have to do much, except for the stress of filling out audit forms and being reviewed for the process of making the process more efficient for the court and government.

I’ve Been Selected: Now What Do We Do?

After you are selected:

You will have about three weeks to get your information together, as is requested by the audit firm.
Most audit firms request the same kinds of materials, but they may go about asking in different ways. This is why it might be helpful to make sure an attorney is on your side as you undergo the audit.
Then, after getting your information to the audit firm, you have to wait to hear from them.

The most common advice is to make sure that you are honest with your information and that you are truthful when you are in contact with the audit firm. They will report to you and the court, and you will probably be through with the process within three months.

Getting Help

The sooner that you have an attorney on your side, the sooner they will be able to help you with the court filings. In truth, you also want to be sure that you are legally represented throughout the entire process of bankruptcy, which will make the entire process easier and more efficient. The odds that you will be selected for an audit are actually low, but with an attorney, you can be pretty sure that you will file correctly and that the auditors will not find mistakes that could hinder the process of your bankruptcy application or cause your case to be denied.

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