Local Rule LBR 2030: Interim Expenses to Preserve the Estate

LBR 2030: Interim Expenses to Preserve the Estate

(a) Administrative Expenses under $1,000. In a Chapter 7 case, the trustee may pay the following § 503(b) administrative expenses without prior notice and a hearing if the expenses are incurred in the ordinary course of the estate's administration and the aggregate amount of all such expenses does not exceed $1,000:

(1) expenses related to changing locks on premises included in the estate;

(2) storage (or rent) expenses for estate property;

(3) expenses associated with winterizing estate property;

(4) insurance for estate property;

(5) advertising proposed sales of estate property;

(6) moving expenses related to transportation of estate property;

(7) expenses related to determining the existence or perfection of liens (but excluding the compensation of any professional person conducting the investigation);

(8) bank fees for obtaining copies of bank documents;

(9) transcript or court-reporter fees; and

(10) taxes incurred by the estate.

Any time after an expense has been allowed pursuant to this subparagraph, a creditor or other party in interest may request a hearing to reconsider the allowance of the expense.

(b) Administrative Expenses over $1,000. The trustee must file a motion with notice and opportunity to object pursuant to LBR 9013(c) before paying any administrative expense that exceeds the $1,000 aggregate amount. The notice must be served pursuant to Fed. R. Bankr. P. 2002(a).

(c) Notice Required Before Expenditures Made.

(1) Notice to Creditors Directly Affected. Except as provided in subparagraph (a), the trustee must give advance notice of a proposed expenditure to any creditor directly affected by the expenditure.

(2) Notice to Others. Any creditor or the United States Trustee may demand advance notice of expenditures in any case. If a demand is made, the trustee must give notice of the expenditure as far in advance as is reasonably practicable. If in the trustee's judgment funds must be expended on an emergency basis to avoid damage to the estate's property, notice must be given to the requesting party promptly after payment.

(d) Objection Filed. If the United States Trustee or a party in interest objects to any expenditure, written notice of the objection must be filed and served on the trustee and all interested parties. If an objection is filed before the expense is paid, the trustee may not pay the expense without obtaining a court order.

(e) Expenses Not Covered by This Rule. This Rule does not authorize payment of wages or professional compensation or authorize the payment of estate funds to the trustee or anyone employed by the bankruptcy estate.