Chapter 7 Trustee Expenditures

U.S. Bankruptcy Court for the Eastern District of Wisconsin

Rule Set: Local Bankruptcy Rules of the U.S. Bankruptcy Court for the Eastern District of Wisconsin

Rule: 2070-1

Jurisdiction: EDWIB

Bluebook Citation: Bankr. E.D. Wis. R. 2070-1

(a) In a chapter 7 case, a trustee may incur and pay from property of the estate necessary and proper expenses of the following types, without prior notice to any party or a specific order authorizing the expenditures, if the trustee reasonably believes payment cannot await a final hearing and the aggregate amount does not exceed $2,500: (1) (2) (3) Changing locks on premises that are property of the estate; Storage expense or rent for property of the estate; Insurance for property of the estate; 13 (4) Moving expenses related to transportation of property of the estate; (5) (6) (7) (8) Expenses incurred to determine the existence or perfection of secured claims (not including wages of persons doing such searches); Fees and charges necessary to maintain and administer estate bank accounts; Transcripts and court reporter fees; Taxes incurred by the estate, including surcharges; and (9) Necessary utility charges. All expenses paid under subsection (a) must be included on a later-filed application for administrative expenses and must be separately itemized and described in that application. The trustee may pay bond premiums in an amount authorized by the United States trustee. This Local Rule does not authorize a trustee to pay wages or compensate professionals and does not authorize the payment of any estate funds to the trustee or anyone employed by the trustee.

Notwithstanding subsection (a), as to any expenditure authorized by this rule, the trustee must give as much notice as practically possible to any party in interest who requests such notice and to any creditor holding a claim secured by property from which the trustee may seek payment under 11 U.S.C. § 506(c). If any party in interest objects to the trustee paying an expense, the trustee may not incur the expense or pay it with funds of the estate without a court order. Any notice or objection under this Local Rule must be in writing served on (1) the trustee, the United States trustee, and counsel for the debtor by either personal delivery, email, similarly expeditious electronic means, or, if those means are unavailable, first‐class U.S. mail and (2) the debtor by first-class U.S. mail. The trustee may pay expenses that exceed an aggregate of $2,500 exclusive of bond premiums only if authorized by court order.

The court may authorize conditions for payment of future expenses after notice and an opportunity to request a hearing is afforded to the United States trustee, any creditor directly affected by the payment, counsel for the debtor (or an unrepresented debtor), and any other party specified by the court. 14 (b) (c) (d) (e) (f) (g) (h) LR 3002-1 Supplemental Claims (a) Filing and administration of supplemental claims. (1) When a debt-adjustment or reorganization plan provides for an allowed claim that is secured by a lien on the debtor’s property, the holder of that claim may supplement its proof of claim to include amounts due and owing after the filing of the bankruptcy petition when authorized by court order or stipulation signed by the creditor, the debtor, and the trustee and filed with the court. (2) A creditor filing a supplemental claim must use the Official Bankruptcy form for filing a proof of claim, modified at a minimum to identify it clearly as a supplemental claim, or the Local Supplemental Proof of Claim Form.

(b) Filing of supplemental claim after adjudication of motion for relief from stay. Unless the court orders otherwise, (1) (2) if a court order authorizes a creditor to file a supplemental proof of claim, the creditor must file any supplemental proof of claim no later than 70 days after entry of the order. if a stipulation authorizes a creditor to file a supplemental proof of claim, the creditor must file any supplemental proof of claim by the date provided in the stipulation or, if no date is provided, no later than 70 days after the stipulation is filed. Filing of supplemental claims by debtor or trustee. If a creditor fails timely to file a supplemental claim, the debtor or trustee may file the supplemental proof of claim pursuant to Federal Rule of Bankruptcy Procedure 3004.

Objections to supplemental claims. An objection to a supplemental claim is governed by Federal Rule of Bankruptcy Procedure 3007 and Local Rule 3007-1; any order allowing or disallowing a supplemental claim may be reconsidered as provided in Federal Rule of Bankruptcy Procedure 3008. Effect of withdrawal, transfer, or assignment of claim on supplemental claim. If a claim that has been supplemented under this rule is withdrawn, the supplemental claim is also deemed withdrawn.

If such a claim is transferred or assigned, a trustee must tender any payment on the supplemental claim to the transferee or assignee. (c) (d) (e) 15 (f) Application of Rule 3002.1 to supplemental claims. Federal Rule of Bankruptcy Procedure 3002.1 applies to all supplemental claims that supplement claims to which that rule otherwise applies.

Chat with this local rule using AI

Ask CiteLaw's AI Navigator anything about this local rule, verify citations, and research related authorities. Sign up for CiteLaw free today to get started.