A federal government program to audit bankruptcy filings is being put on hold due to budgetary constraints.<\/p>\n
The U.S. Trustee Program (USTP) \u2013 part of the Justice Department \u2013 began auditing corporate and individual bankruptcies as part of Congress’s 2005 overhaul of the Bankruptcy Code. The USTP in March said it has \u201cindefinitely suspended\u201d the audits. This is not the first time a lack of funds has interfered with the program.<\/p>\n
The 2005 law changes authorized the USTP to randomly select for auditing one of every 250 personal bankruptcy cases in each federal judicial district. The amendments also authorized audits of cases showing statistically unusual claims. Under the program, U.S. trustees select the cases, and independent accountants then conduct the audits.<\/p>\n
According to a USTP report, the program saw audits of one of every 250 consumer cases per district. But in fiscal years 2008 \u2013 2010, that rate fell to one of every 1,000 (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A federal government program to audit bankruptcy filings is being put on hold due to budgetary constraints. The U.S. Trustee Program (USTP) \u2013 part of the Justice Department \u2013 began auditing corporate and individual bankruptcies as part of Congress’s 2005…<\/span><\/p>\n