Kansas debtors have less errors on their bankruptcy paperwork than the national average, according to the report just issued by the U.S. Trustee. “Material misstatements” were reported in 12% of the audited cases, compared with 22% nationwide, although the report does not say just how serious the errors were.
The federal government audits bankruptcy cases just to keep everyone honest, but your odds of being selected are very low. There were 19 cases chosen for audit in Kansas during 2009 fiscal year. That is 19 out of 10,588 cases filed in Kansas, one in 557 cases.
Auditors filed Reports of Audits indicating at least one “material misstatement” in 17 Kansas cases. Two cases had Reports of No Audit. It is unknown whether any of these debtors did not get their discharges or had other negative outcomes because of the audits. It also is unknown why Kansans fare better on the audits.
See my post on the Bankruptcy Law Network today explaining audits.
