Chapter 13 vs. Chapter 7: Determining the Best Bankruptcy Path for You There are certain situations in which you may think you need to file for Chapter 13 bankruptcy to resolve your debt problems. Reading multiple articles on the internet can give you the impression that Chapter 13 bankruptcy is the best option for you. In this article, with the assistance of an experienced bankruptcy attorney, you will learn when Chapter 13 bankruptcy is better than Chapter 7 bankruptcy. In Portland, Oregon, Michael D. O’Brien & Associates, P.C. is the bankruptcy law firm that can effectively and efficiently assist you…
FAQs About Debtor Audit
Bankruptcy is a fantastic tool that provides individuals a second chance to rebuild their lives after enduring financial difficulties. However, some seek to abuse the bankruptcy system or commit deception to receive bankruptcy benefits. There are ways to discourage these types of activity, and one of those is through a random audit.
On December 12, 2022, it was announced that USTP would resume designating cases for audit. You may be wondering what this means for you. We’ve compiled some questions you may have and addressed them in this post.
If you have any questions about the bankruptcy process, Michael D. O’Brien & Associates, P.C. has you covered! Feel free to call our Portland bankruptcy law firm to learn more.
What is the Debtor Audit?
According to the Bankruptcy Abuse and Consumer Protection Act of 2005, the USTP (US Trustee Program) can hire independent firms to audit Chapter 7 and Chapter 13 cases. The USTP designates a percentage of cases for each judicial district to be audited. That means they will get some bankruptcy cases to check whether it was filed correctly and truthfully.
What is the Debtor Audit For?
It’s designed to “determine the accuracy, veracity, and completeness” of everything you’ve submitted to the bankruptcy court. This includes schedules, petitions, and other such information.
In other words, the independent firms will confirm that you did everything correctly, didn’t lie in your forms, and did not miss any submissions.
What’s Next for Debtor Audits?
On March 13, 2023, the USTP will continue designating Chapter 7 and Chapter 13 cases to be audited. Previously, this activity was discontinued in 2020 due to health concerns related to COVID-19.
Do I Need to Comply with the Audit?
The website of the US Department of Justice states that debtors must cooperate with the audit.
What Do I Do About this Audit?
There is no way to avoid an audit if your case has been randomly assigned for audit. The best thing to do is to ensure that your petition is correct, true, and complete. Hiring a competent bankruptcy attorney is crucial to ensure your case goes through. If your case gets rejected because of the audit, not only will you have failed to eliminate your debt, you may be suspected of committing fraud.
A knowledgeable attorney can prevent this situation by using their extensive legal experience to avoid common mistakes and ensure your documents are complete.
Where Can I Find an Attorney to Help Me?
If you live in Oregon, your best bet is to consult Michael D. O’Brien & Associates, P.C. Our law firm serves the different communities of Oregon, including Portland, Tigard, Bend, and Clackamas, among others! We’re dedicated to understanding your goals and crafting strategies that achieve them while minimizing risks.
If you don’t want issues with your bankruptcy petition, consult our Oregon bankruptcy attorneys today!
Our Oregon Attorneys are here to help!