The U.S. Trustee has stopped auditing debtors in bankruptcy cases. The Executive Office of the U.S. Trustee says Congress did not fund the budget for the audits in the 2008 appropriations bill. Alternate funding is being sought so the audits can resume, the EOUST reports.

This is good news for debtors whose advocates testified at a Congressional hearing in October 2007 that the audits were abusive to debtors because of overbearing auditors and erroneous reports of material misstatements in the bankruptcy papers.

See my post on the Bankruptcy Law Network for more details and the official statement by the U.S. Trustee.

Related posts:

1. Kansas Bankruptcy Judges End Secret Mortgage Fees in Chapter 13
2. Wieland Named U.S. Trustee for Kansas
3. What Documents Do I Need for a Bankruptcy Audit?
4. Wichita Car Dealer Convicted of Bankruptcy Fraud – Facing 5 Years in Jail