Local Rule LR 2070-1: Chapter 7 Trustee Expenditures

LR 2070-1 Chapter 7 Trustee Expenditures

(a) In a chapter 7 case, a trustee may incur and pay from property of the estate necessary and proper expenses of the following types, without prior notice to any party or a specific order authorizing the expenditures, if the trustee reasonably believes payment cannot await a final hearing and the aggregate amount does not exceed $2,500:

(1) Changing locks on premises that are property of the estate;

(2) Storage expense or rent for property of the estate;

(3) Insurance for property of the estate;

(4) Moving expenses related to transportation of property of the estate;

(5) Expenses incurred to determine the existence or perfection of secured claims (not including wages of persons doing such searches);

(6) Fees and charges necessary to maintain and administer estate bank accounts;

(7) Transcripts and court reporter fees;

(8) Taxes incurred by the estate, including surcharges; and

(9) Necessary utility charges.

(b) All expenses paid under subsection (a) must be included on a later-filed application for administrative expenses and must be separately itemized and described in that application.

(c) The trustee may pay bond premiums in an amount authorized by the United States trustee.

(d) This Local Rule does not authorize a trustee to pay wages or compensate professionals and does not authorize the payment of any estate funds to the trustee or anyone employed by the trustee.

(e) Notwithstanding subsection (a), as to any expenditure authorized by this rule, the trustee must give as much notice as practically possible to any party in interest who requests such notice and to any creditor holding a claim secured by property from which the trustee may seek payment under 11 U.S.C. § 506(c).

(f) If any party in interest objects to the trustee paying an expense, the trustee may not incur the expense or pay it with funds of the estate without a court order.

(g) Any notice or objection under this Local Rule must be in writing served on (1) the trustee, the United States trustee, and counsel for the debtor by either personal delivery, email, similarly expeditious electronic means, or, if those means are unavailable, first‐class U.S. mail and (2) the debtor by first-class U.S. mail.

(h) The trustee may pay expenses that exceed an aggregate of $2,500 exclusive of bond premiums only if authorized by court order. The court may authorize conditions for payment of future expenses after notice and an opportunity to request a hearing is afforded to the United States trustee, any creditor directly affected by the payment, counsel for the debtor (or an unrepresented debtor), and any other party specified by the court.