(a) Trustee’s Use of Estate Funds.
(1) A chapter 7 trustee may, without prior approval of the Court, pay from funds of the estate
routine expenses for preservation of the estate, such as insurance premiums on property, locksmith
charges, storage space rental, filing fees for adversary proceedings, and other routine charges.
Expenses included within this provision do not include reimbursement of internal operating expenses of
the trustee. Payments made under this provision in each case shall not exceed an aggregate of $2,400.00
in any twelve-month period.
(2) In addition to the expenses authorized in (a)(1) above, a chapter 7 trustee may, without
prior approval of the Court, incur and pay funds of an estate, on an ongoing basis, any actual,
necessary expense for bank fees and service charges imposed by third party depositories, related to
the administration of the estate’s accounts. The Court retains authority to review and approve bank
fees and service charges during the administration of an estate.
(b) Notice of Proposed Use, Sale, or Lease of Property.
Notice of a motion to use, sell, or lease property shall contain the negative notice language set
forth in L. Rule 9014-1(a). In addition to the requirements of FRBP 2002(c)(1), the notice shall
contain:
(1) The name and address of the proposed buyer or lessee and any relationship the proposed buyer
or lessee has to the debtor or any insider of the debtor;
(2) The proposed consideration to be received by the estate, including estimated costs of the
sale or lease, including commissions, auctioneer's fees, costs of document preparation and
recording, and any other customary closing costs;
(3) A description of the estimated or possible tax consequences to the estate, if known, and how
any tax liability generated by the use, sale, or lease of such property will be paid;
(4) Based on reasonable inquiry, all entities known or believed to hold legal or equitable
interests in the property to be sold or leased;
(5) Whether the offer is subject to higher and better bids, along with other material terms and
conditions of the offer;
(6) The debtor’s opinion of the value of the property and the basis therefor; and
(7) Whether the sale is free and clear of liens, claims, or interests.
(c) Motions in Chapter 12 and 13 Cases.
In chapter 12 and chapter 13 cases, a motion for proposed use, sale, or lease of property shall
indicate consent or lack of consent of the trustee and of any affected secured creditor.
L. Rule 5011-1. WITHDRAWAL OF REFERENCE | LOCAL COURT RULES INDEX | L. Rule 6008-1. REDEMPTION OF PROPERTY FROM LIEN OR SALE |