E.D.N.Y. LBR 6005-1 — Auctioneers
A published court requirement that applies in New York. Category: Local Rules. Verified against the official source (E.D.N.Y. (Bankr.) — Local Bankruptcy Rules (U.S. Bankruptcy Court for the Eastern District of New York)) on November 3, 2026.
Summary
E.D.N.Y. LBR 6005-1 — Auctioneers: the court's own rule, verbatim from the Local Bankruptcy Rules for the United States Bankruptcy Court for the Eastern District of New York (official PDF, sha-custodied). Court-level requirement: applies in every case and proceeding before the U.S. Bankruptcy Court for the Eastern District of New York, alongside the Federal Rules of Bankruptcy Procedure and any judge-specific procedures.
Requirement
(a) Retention of Auctioneer. A debtor in possession or trustee may retain the services of an auctioneer, subject to prior Court approval. (b) Compensation. An auctioneer shall be allowed to receive buyer’s premiums, commissions and reimbursement of expenses for sales of property, subject to Court approval, in an amount not to exceed: (i) buyer’s premiums and/or commissions on each sale conducted by the auctioneer at the following rates in the aggregate: (A) 10% of any gross proceeds of sale up to $50,000; (B) 8% of any gross proceeds of sale in excess of $50,000 but not more than $75,000; (C) 6% of any gross proceeds of sale in excess of $75,000 but not more than $100,000; (D) 4% of any gross proceeds of sale in excess of $100,000 but not more than $150,000; and (E) 2% of any gross proceeds of sale in excess of $150,000; and (ii) reimbursement for reasonable and necessary expenses directly related to the sale, including labor, printing, advertising, and insurance, but excluding workers’ compensation, social security, unemployment insurance, and other payroll taxes. When directed by the trustee or debtor in possession to transport goods, the auctioneer may be reimbursed for expenditures related thereto. No travel expenses shall be allowed, except as ordered by the Court. (c) Bond. An auctioneer employed pursuant to Bankruptcy Code § 327 shall not act until the auctioneer files and provides to the United States trustee, with respect to each estate, at the auctioneer’s expense, a surety bond in favor of the United States, to be approved, and in such sum as may be fixed, by the United States trustee, conditioned upon: (i) the faithful and prompt accounting for all monies and property that may come into the auctioneer’s possession; (ii) compliance with all rules, orders, and decrees of the Court; and (iii) the faithful performance of the auctioneer’s duties. (d) Blanket Bond. In lieu of a bond in each case, an auctioneer may file, at the auctioneer’s own expense, a blanket bond covering all cases in which the auctioneer may act. The blanket bond shall be in favor of the United States in such sum as the United States trustee shall fix and shall be conditioned for each estate on the same terms as bonds in separate estates. (e) Application for Buyer’s Premiums, Commissions and Reimbursement of Expenses. An auctioneer shall file an application with the Clerk for approval of buyer’s premiums, commissions and reimbursement of expenses on not less than 7 days’ notice to the debtor, the trustee, the United States trustee, and each committee appointed under Bankruptcy Code §§ 1102 or 1114. An application shall not be granted if the report of sale and accompanying affidavit described in E.D.N.Y. LBR 6004-1(f) and (g) have not been filed. An appearance is not required for requests of buyer’s premiums, commissions and reimbursement of expenses of less than $10,000. CROSS-REFERENCES: E.D.N.Y. LBR 2014-1, 6004-1, 9025-1 REFERENCE: Bankruptcy Code § 327
Source of truth
(a) Retention of Auctioneer. A debtor in possession or trustee may retain the services of an auctioneer, subject to prior Court approval. (b) Compensation. An auctioneer shall be allowed to receive buyer’s premiums, commissions and reimbursement of expenses for sales of property,
- Official source
- E.D.N.Y. (Bankr.) — Local Bankruptcy Rules (U.S. Bankruptcy Court for the Eastern District of New York)
- Source health
- Healthy · checked November 14, 2026
- Effective date
- —
- Last verified
- November 3, 2026benchpath-nyfed-rules-2026-11-03
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