UST Audits coming this month (October)

Jonathan C. Becker, Attorney at Law

Lawrence, Kansas

Effective October 17 per BAPCPA §603 at least 1 of every 250 cases will be audited. Notification letters will be sent by the UST. Recipients will have 21 days to produce the 4 categories of required documents:

(1) 6-months of payment advices

(2) 6-12 months of bank statements

(3) divorce decree

(4) packet of documents such as 2-4 years of tax returns, titles to property, deeds, etc.

The audit will result in one of 3 outcomes:

audit complete, no discrepancy: UST will not interfere with discharge

audit complete, discrepancy: UST may move to deny discharge

audit incomplete: UST will move to deny discharge

Said Mr. Becker, "a lot of attorneys are going to get caught by this. It may also result in disgorgement motions"