Restrictions on Approving Court Appointments

(a) APPOINTING OR EMPLOYING RELATIVES. (1) Trustee or Examiner. A bankruptcy judge must not ap- prove appointing an individual as a trustee or examiner under § 1104 if the individual is a relative of either the judge or the United States trustee in the region where the case is pending. (2) Attorney, Accountant, Appraiser, Auctioneer, or Other Pro- fessional Person. A bankruptcy judge must not approve employ- ing under § 327, § 1103, or § 1114 an individual as an attorney, ac- countant, appraiser, auctioneer, or other professional person who is a relative of the judge. The court may approve employ- ing a relative of the United States trustee in the region where 73 FEDERAL RULES OF BANKRUPTCY PROCEDURE Rule 5003 the case is pending, unless the relationship makes the employ- ment improper. (3) Related Entities and Associates. If an appointment under (1) or an employment under (2) is forbidden, so is appointing or employing: (A) any entity—including any firm, partnership, or cor- poration—with which the individual has a business asso- ciation or relationship; or (B) a member, associate, or professional employee of such an entity. (b) OTHER CONSIDERATIONS IN APPROVING APPOINTMENTS OR EM- PLOYMENT. A bankruptcy judge must not approve appointing a person as a trustee or examiner—or employing an attorney, ac- countant, appraiser, auctioneer, or other professional person—if the person is, or has been, so connected with the judge or the United States trustee as to make the appointment or employment improper. (As amended Apr. 29, 1985, eff. Aug. 1, 1985; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 2, 2024, eff. Dec. 1, 2024.)