The trustee must serve the motion on the debtor, debtor’s
U.S. Bankruptcy Court for the Central District of California
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counsel (if any), the United States trustee, holders of the 20 largest unsecured claims, and any other party in interest entitled to notice under FRBP 2002. If a timely objection is filed, the trustee must comply with LBR 9013-1(o)(4). (2) Hearing. The court may set a hearing on a cash disbursements motion regardless of whether an objection is filed.
However, if the court does not advise the trustee of a hearing on the motion within 7 days after the motion is filed, the trustee may disburse funds from the estate to pay the expenses referred to in the motion to the extent the trustee deems it necessary, pending an order of the court. If, thereafter, the trustee receives notice that the court has issued an order in which the cash disbursements motion has been disapproved in whole or in part, or that the court has set a hearing, the trustee must stop paying the expenses for which authorization was sought in the motion or otherwise comply with the provisions of the order. The trustee may file a motion for reconsideration pursuant to LBR 9013-4. (3) Personal Liability and Disclosure.
Except as provided in this rule, a trustee who makes a disbursement without prior court approval may be personally liable to the estate for the amount of the disbursement. All disbursements made by the trustee pursuant to this rule must be disclosed in the trustee’s final report and in all applications for fees or costs by the trustee and by paraprofessionals employed in the case by the trustee. (h) Nonexclusive Remedy. Nothing in this rule precludes the trustee from seeking court approval to disburse estate funds by way of a noticed motion filed and served pursuant to LBR 9013-1(d).