Local Rule Rule 2014-1: Employment of Professionals by Chapter 7 Trustees

Rule 2014‐1 Employment of Professionals by Chapter 7 Trustees

(a) Appraisers, Auctioneers, and Agents A chapter 7 trustee's application to hire an appraiser, auctioneer, or agent must first be submitted to the United States Trustee for review and recommendation and must be served upon the debtor and debtor's attorney. If the agreed compensation is less than $1,000, or not more than 10% of the sales price for a sales agent, or not more than the generally applicable rates for collection of commercial accounts receivable, and the United States Trustee agrees with such employment on such terms, such employment and terms shall be deemed approved upon such application with the United States Trustee's agreement attached to the application being filed with the Clerk. If the agreed compensation exceeds such amounts or if the United States Trustee does not agree with such employment, the United States Trustee shall file the application with the report and recommendation to the Court for disposition.

(b) Attorneys and Accountants An application by a chapter 7 trustee for an order approving the employment of an attorney or an accountant shall first be submitted to the United States Trustee for review and recommendation and served upon the debtor and debtor's attorney. The application submitted to the United States Trustee must be accompanied by a written statement setting forth the facts that in the trustee's view justify the retention of an attorney or accountant and the terms and conditions of employment. The United States Trustee shall then file the trustee's application with a report and recommendation on such employment, but without any detailed disclosure of the facts for justification.