Legal Question in Bankruptcy in New York

audit

I am in bankrupsy ch 13 100% payback plan, my lawyer calls me the other day and says i am being audited and need 6months bank statements sent to him. I already had my hearing and gave all tax returns and expenses. I have no other income and usually have a balance of zero in my checking after paying the bills. Should I tell them to go away, why do these people want to degrade me any further. By the way my wife suffers form a broken back, and needs an overy removed and my mom has brain cancer, I am a mental and physical wreck. I also have a 4 yr old child. Can I sue them to leave me alone? I just starrted paying my plan and my morterage agian.


Asked on 2/04/07, 1:54 pm

1 Answer from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: audit

You don't get a discharge in Chapter 13 until you complete all your payments and comply with other requirements that you have as a debtor in a bankruptcy case. One of those duties is to cooperate with any auditor appointed in the case. The debtor audit requirement was enacted as part of the Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005 (BAPCPA). It applies to bankruptcy cases filed after 10/20/06. The U.S. Trustee's Office has announced that it will audit 1 out of every 250 chapter 7 and chapter 13 cases. See the following 10/19/06 press release on the U.S. Trustee's website for futher info.:

http://www.usdoj.gov/ust/eo/public_affairs/press/docs/pr20061019.htm

Cooperation is not optional. It is mandatory for a debtor in bankruptcy who is selected for audit. You certainly don't have the right to sue the auditor because he/she has asked you to comply with the law.

Discuss any quesions about this with your attorney.

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Answered on 2/04/07, 4:04 pm


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