Local Rule 2015-1: Trustees – General

Rule 2015-1 Trustees – General

(a) Funds of the Estate.

(1) Funds of a chapter 7, 11, 12 or 13 estate must be deposited in an account authorized by § 345 of the Code.

(2) If at any time the total amount deposited exceeds the FDIC or NCUA insurance limits, the funds must be deposited with an entity posting a bond or collateral approved by the United States trustee.

(b) Return of Documents.

(1) Except to the extent otherwise provided by law, or order of the court, the trustee: [A] if return of the document has not been requested, may destroy the document; or [B] if return is requested in writing, must return the document to the person who provided the document within a reasonable time after the case is closed.

(2) The trustee may require any person who has requested the return of a document or paper to provide the trustee with a stamped, self-addressed return envelope or otherwise bear all expenses incurred for the return.

(c) Subchapter V Trustee Advance Fee and Expense Deposit

(1) Initial Payment. No later than seven (7) days after the filing of the Notice of Appointment of Trustee, the debtor must tender to the Subchapter V trustee an advance fee and expense deposit in the sum of one thousand dollars ($1,000.00). [A] The Subchapter V trustee will hold these funds in a segregated account for the purpose of compensation for services rendered and reimbursement for out-of-pocket expenses. [B] Payment of compensation and reimbursement to the Subchapter V trustee from the segregated funds is subject to allowance and approval by further order of the Court under §§ 503(b), 330, 331 and 1194 of the Code, Rule 2016 of the Federal Rules of Bankruptcy Procedure and Local Bankruptcy Rule 2016-1. [C] Failure of the debtor to tender the required amount within seven (7) days after the filing of the Notice of Appointment of Trustee may result in dismissal of the debtor's case.

(2) Monthly Payments. Each month on the same day of the month as the petition date, the debtor must tender to the Subchapter V trustee an additional advance fee and expense deposit in the sum of five hundred dollars ($500.00), until the amount of segregated funds reaches the sum of three thousand dollars ($3,000.00). [A] The debtor must recommence payments if the amount of segregated funds falls below $3,000 due to the Subchapter V trustee having withdrawn funds for court-approved compensation or reimbursement, until the advance deposit again reaches no less than $3,000.

(3) Modification. Upon the motion of any interested party, the dollar amounts for deposit are subject to adjustment by the Court.

(4) Excess Funds. No later than ten (10) days after the court approves a Subchapter V trustee's final application for compensation, the Subchapter V trustee must return any excess funds to the debtor.