Bankruptcy Hagerstown trustee audits these cases every year. The purpose of their audit is verification, in order to prevent themselves from fraud and from the debtors lying about their income and financial conditions. If they ever find any fraud and lie about your conditions they can dismiss your case as well as they can charge criminal penalty at you. There are very few case which have been audited.
From the thousand of application they can randomly choose any application for audit from chapter 7 or chapter 13 cases. First they identify the case for audit and then send their team for audit. They will review it’s documents, schedules and debtor’s petition. Applicators for chapter 7 and 13 typically selected for audit within ten days after filing the petition and they assigned firm to the case immediately. If your case is selected for audit purpose you will be notified and they will tell you about the documents they need for this purpose. Do make sure and discuss about your case with Bankruptcy lawyer hagerstown. Debtor’s must co operate with firm and provide them all the additional information and documents for further proceeding. Firm give them the margin of 20 days to submit the documents they requested for. In audit they verify income, expenses and assets in statements and schedules. They will do investigation and their motive is to find some false statement and lie statement about the person in bankruptcy case. They will look for the material through which they can prove the person’s reality but after doing investigation they clear the person and case proceeds further. The audit firm have to submit report within 21 days to court. If you provide them any false statement about your income or financial condition they will not release you from the debts and will start doing criminal investigation as well as dismiss your case. The statements and applications you are providing to the firm must be original and should be true in order to release yourself from this debt burden. Don’t even think about to mislead the bankruptcy court because it will not give you any benefit but you are going to trap yourself in major case by doing this.