For questions or concerns about information on the petition, the debtor will be required to supply relevant explanations. Supplying the required evidence, documents and explanations may seem daunting, but is it part of the process to ensure that bankruptcy debtors continue to be honest and forthcoming on their petitions.
If the debtor is unable to provide sufficient evidence to reasonably explain the issue, the court might:
- dismiss the debtor's case,
- deny or revoke the debtor's ability to obtain a discharge, or
- refer the matter to the U.S. Attorney for criminal investigation.
If there are misrepresentations on the petition, the audit or review will likely vet out the discrepancy. Whether the discrepancy is an honest mistake or just needs clarification or an explanation, the debtor will want to provide any requested information in a reasonable time to avoid any ramifications from the court.
If a debtor is found to be hiding assets or misrepresenting income without a reasonable explanation, the result will likely be dismissal of a debtor’s case and possibly criminal prosecution. Case audits are not uncommon, a certain number of cases are audited each year. Some cases are randomly selected and others are flagged for audit by the information contained in the petition. The best way to handle the audit is to ensure, that as the debtor, you have properly reviewed the petition before filing and know all the information contained therein. And, that the information in the petition is true and correct to the best of your knowledge. The bankruptcy system can only work if bankruptcy filers are honest with the court. If your case is selected for audit, and all information contained within the petition is accurate, the audit will be concluded without issue and the debtor will receive their bankruptcy discharge like normal.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Misleading the bankruptcy court is not worth the repercussions. Oversights and mistakes can happen, but it is important to be diligent in your pre-filing review of the petition and accurately disclose and list all assets and transfers to the court. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com and let us help you get your life back.
