Filing for bankruptcy is an intricate process, and getting audited as a result can make the situation even more complicated.
While all bankruptcy cases are monitored by a bankruptcy trustee appointed by the court, not all bankruptcy cases will be audited.
In fact, only a small number of the bankruptcy cases filed each year are selected to be audited by an independent public accountant or firm. Read on to learn more.
The Chances of Your Bankruptcy Case Being Audited are Low
Most likely, your bankruptcy case will not be audited. During 2018, there were over 700,000 bankruptcy cases filed and just 2,070 were selected for auditing.
Audited cases are typically randomly selected, but it’s important to remember that as long as you are judicially honest and forthright in your bankruptcy filings, you shouldn’t have much cause for concern.
Signs Your Bankruptcy Case May Be Audited
While most cases are randomly selected for auditing, this is not true for all cases. If your case has certain red flags, it may trigger an audit.
Your case may undergo an “exception audit” if your income or expenses significantly deter from the statistical averages of the judicial district. If your expenses are notably higher, your chances of being selected for an exception audit go up.
An Attorney Can Help Determine Whether Your Case Will Be Audited
If you are concerned about an exception audit when filing for bankruptcy or have questions about the process, don’t hesitate to reach out to our team right away for more information. We have helped many others in similar situations and we want to do everything in our power to help you achieve your financial goals too.
Contact the experienced attorneys at Caddell Reynolds Law Firm by calling 800-671-4100 or filling out an online contact form today.