Audit: Nearly one-third of bankruptcy cases had at least one material misstatement

Among the 3,582 random audits of individual Chapter 7 and Chapter 13 bankruptcy cases, 30% had at least one material misstatement, according to the report released April 30 by the U.S. Trustees Office.

The random audits, required under the 2005 bankruptcy law reforms, are part of the oversight of private trustees and enforcement of bankruptcy laws assigned to the U.S. Trustee program.

The federal judicial districts with the 10 or more audits, had reports of material misstatements that ranged from 9% to 55%, according to the report.

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