2016-2(a)-(e), (g):  CHAPTER 7 TRUSTEE: Paying Expenses: Preapproved or Not Preapproved

LBR 2016-2 provides authority and procedures for a chapter 7 trustee to pay certain expenses when a bankruptcy estate has assets.

A.  NO COURT ORDER NEEDED

     LBR 2016-2(a) authorizes a chapter 7 trustee to pay expenses of the estate if the expense does not exceed $1,000 and the expense is on the list of expenses provided in LBR 2016-2(a).

     LBR 2016-1(c) authorizes a chapter 7 trustee to pay the trustee bond out of estate assets without seeking court authority. 

B.  COURT ORDER REQUIRED

     LBR 2016-2(b) authorizes a chapter 7 trustee to file a notice of intent to pay expenses up to $5,000 when the expenses are on the list provided in LBR 2016-2(b).  If a party timely files an objection and requests a hearing, the trustee must file a notice of hearing. 

• The court provides a form NOTICE OF INTENT.  See link below
• The court provides a form NOTICE OF HEARING.  See link below

     LBR 2016-2(d) authorizes a chapter 7 trustee to file an application to employ a tax preparer who agrees to a fee of up to $1,000; then, a subsequent fee application is not required. 

• The court provides a form NOTICE OF MOTION AND MOTION.  See link below
• The court provides a form ORDER.  See link below

     LBR 2016-2(e) authorizes a chapter 7 trustee in an emergency, to pay expenses that exceed the limits of LBR 2016-2(a) or 2016-2(b).  Then, the trustee must file a motion to approve these disbursements within 7 days of making the disbursements. 

• The court does not provide a form motion,
• The court has a form Hearing Notice and Notice of Opportunity to Request a Hearing.  See links below

     LBR 2016-2(g) authorizes a chapter 7 trustee to pay any expense, regardless of whether the expense is listed in 2016-2(a) or (b), by filing a motion to approve cash disbursements, and then set a hearing or use the procedure of LBR 9013-1(o).