[CNYBBA-LISTSERV] Random Audits start 10/20/06
Ruth Babbitt
ruth at crossmore.com
Fri Sep 22 09:02:32 CDT 2006
MessagePlease accept my apologies - the foregoing message was sent in error.
Ruth Babbitt
Secretary to Edward Y. Crossmore, Esq.
The Crossmore Law Office
115 West Green Street
Ithaca, New York 14850
Tel.: (607) 273-5787
Fax: (607) 273-0291
This e-mail message is confidential, intended only for the named
recipient(s) above and may contain information that is privileged, attorney
work product or exempt from disclosure under applicable law. If you have
received this message in error, or are not the named recipient(s), please
immediately notify the sender at (607) 273-5787 and delete this e-mail
message from your computer. Thank you.
-----Original Message-----
From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org]On
Behalf Of Ruth Babbitt
Sent: Friday, September 22, 2006 9:59 AM
To: mary at fangiolaw.com; Central New York Bankruptcy Bar Association
Subject: Re: [CNYBBA-LISTSERV] Random Audits start 10/20/06
Message from Ed Crossmore:
I agree with Mr. Ruswick.
Ruth Babbitt
Secretary to Edward Y. Crossmore, Esq.
The Crossmore Law Office
115 West Green Street
Ithaca, New York 14850
Tel.: (607) 273-5787
Fax: (607) 273-0291
This e-mail message is confidential, intended only for the named
recipient(s) above and may contain information that is privileged, attorney
work product or exempt from disclosure under applicable law. If you have
received this message in error, or are not the named recipient(s), please
immediately notify the sender at (607) 273-5787 and delete this e-mail
message from your computer. Thank you.
-----Original Message-----
From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org]On
Behalf Of Mary Fangio
Sent: Friday, September 22, 2006 9:44 AM
To: 'Central New York Bankruptcy Bar Association'
Subject: Re: [CNYBBA-LISTSERV] Random Audits start 10/20/06
Well you certainly can't sign the form without your client's permission
can you? What are the consequences if they want to comply with records
required but don't want to waive their right to counsel during the audit.
Also the fee agreement must address this issue with the client.
Mary
-----Original Message-----
From: cnybba-bounces at cnybba.org [mailto:cnybba-bounces at cnybba.org] On
Behalf Of Richard Ruswick
Sent: Friday, September 22, 2006 9:19 AM
To: lhwilson at cnytrustee.com; Central New York Bankruptcy Bar
Association
Subject: Re: [CNYBBA-LISTSERV] Random Audits start 10/20/06
Given the possible penalties involved, how can the debtor's attorney
possibly allow direct contact between the UST and the debtor? This is just
another time-taking monster that we have to build into our fee schedule.
Dick Ruswick
Lynn Harper Wilson <lhwilson at cnytrustee.com> wrote:
I was at a conference last week and one of the speakers was the U.S.
Trustee from Region 6. He gave some information about the upcoming audits,
that I thought you might be interested in. (I also heard this at the NACTT
conference in Denver but didn't write it down then.) I'm sure Guy will let
us know if I have any of this information wrong.
The audits are going to start on 10/20/06 and one out of every 250
Chapter 7 & 13 cases will be audited. The cases will be selected at random
by a computer program. A team in Washington will notify the auditor when
documents are filed in the case. The local UST will send an audit
notification to the debtor (& atty, I presume) & Trustee with a list of
documents for the debtor to produce, a form for the debtor's attorney to
allow direct contact with the debtor, and an information sheet. A notation
will be made on CM/ECF that the case is being audited, and the Court Clerk
will not close the case until the audit is completed.
The debtor will have 21 days to provide the requested documents.
Then the auditor will have 21 days to complete the audit, although they make
take a little longer. The whole process should be completed within 70 days
of the petition being filed. "Targeted audits" will also be selected by the
Washington D.C. team.
The audit will be a "desk audit." Two commercial database searches
will be performed, and the debtor will be given an opportunity to explain
any apparent "material misstatements" in the petition. They do not
contemplate having face-to-face meetings or site visits.
The information required will be paystubs for six months; tax
returns for two years with attachments; account statements for six months
before the petition was filed and the month the petition was filed; copies
of divorce decrees, property settlements, and child support documents. They
will only be looking at the original schedules, not amendments. They will
not say what is on the list of "material misstatements" they are looking
for.
Reports will be filed with the Bankruptcy Court. One of three kinds
of reports will be filed: 1) report that discloses material misstatements,
2) report of no material misstatements, or 3) report of no audit (i.e. case
was dismissed before audit was completed or debtor failed to coopertate).
The clerk will send notice to creditors if material misstatements were
discovered, although the notice will not say what the material misstatements
are. The creditor can look at the report on CM/ECF if they want to know.
"Enforcement options" include: criminal referral, objection to
discharge or action to revoke discharge, motion to dismiss with prejudice,
objection to confirmation, motion to modify plan (or request for Chapter 13
Trustee to do it), motion to convert, avoidance actions (by panel Trustees),
discovery (motions to compel), sanctions against attorney, motions to compel
amended schedules.
***************************************
Lynn Harper Wilson, Staff Attorney
Standing Chapter 12 & 13 Trustee's Office
Syracuse, New York
e-mail: lhwilson at cnytrustee.com
web site: http://www.cnytrustee.com
_______________________________________________
CNYBBA mailing list
CNYBBA at cnybba.org
http://cnybba.org/mailman/listinfo/cnybba_cnybba.org
--------------------------------------------------------------------------
Yahoo! Messenger with Voice. Make PC-to-Phone Calls to the US (and 30+
countries) for 2¢/min or less.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: /pipermail/cnybba_cnybba.org/attachments/20060922/04c697fc/attachment-0001.html
More information about the CNYBBA
mailing list