SOAVE’S BANKRUPTCY NEWS

The Unites States Trustee Program has pursued the Civil Enforcement Iniative since fiscal year 2002. The CEI involves a higher level of scrutiny by the U.S. Trustee and Panel Trustees. The CEI should be a concern for any party coming in contact with the bankruptcy system, and knowledge of it’s goals and priorities should be considered by any potential debtor.

The top priorities of the CEI are to civilly prosecute debtors who commit fraud or abuse the bankruptcy system, and to pursue those who mislead or misinform debtors, make false representations in connection with a case, or otherwise abuse the process. In 2003 the CEI resulted in 41,000 inquiries and thousands of formal actions against debtors and their attorneys. The financial impact in 2003 was $155 million.

In September 2003 the Program started a Debtor Audit Pilot Project to identify significant errors in bankruptcy schedules. The DAPP involves CPA and investigative firms reviewing 64,000 consumer Chapter 7 petitions in Bankruptcy Courts across the country.

Law offices of

Attorneys & Counselors at Law

Complex consumer and small business bankruptcies

(810)326-7000

Because bankruptcy reform legislation died in congress last year doesn’t mean its back to business as usual in bankruptcy court. The goals the US Trustee Program sought to achieve in part through the failed legislation are now being pursued through increased enforcement and case scrutiny.

Many debtors are in situations that will result in scrutiny of their case and possible enforcement action against both the debtor and the professionals involved if a case is filed without full awareness of the potential pitfalls.

Our staff specializes in resolving debtor problems in complex consumer chapter 7 and 13 cases, and small business chapter 11 (corporate) and 13 (dba) cases. We can ethically and legally stop bank and tax levies, seizures, garnishments, foreclosures, repossessions, evictions and utility shut offs. We can also slash tax debts and cram down or strip off many secured debts.

Free Confidential Consultation (810) 326-7000