S.D.N.Y. LBR 6005-1 — Auctioneers
A published court requirement that applies in New York. Category: Local Rules. Effective September 30, 2024. Verified against the official source (S.D.N.Y. (Bankr.) — Local Rules (U.S. Bankruptcy Court for the Southern District of New York)) on November 3, 2026.
Summary
S.D.N.Y. LBR 6005-1 — Auctioneers: the court's own rule, verbatim from the Local Bankruptcy Rules for the Southern District of New York, effective September 30, 2024 (official PDF, sha-custodied). Court-level requirement: applies in every case and proceeding before the U.S. Bankruptcy Court for the Southern District of New York, alongside the Federal Rules of Bankruptcy Procedure and any judge-specific procedures; the book's own commentary on the rule is kept with the record, not published.
Requirement
(a) No Official Auctioneer. There shall be no official auctioneer. (b) Compensation. Unless the Court orders otherwise for cause, compensation and reimbursement of expenses shall be allowed to an auctioneer for sales of property as follows: (1) commissions on each sale conducted by the auctioneer at the following rates: (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; (E) 2% of any gross proceeds of sale in excess of $150,000; and (2) 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 shall be reimbursed for expenditures related thereto. No travel expenses shall be allowed, except as ordered by the Court. (c) Buyer’s Premiums. If a “buyer’s premium” is to be sought at any auction there must be disclosure of this intent to the Court prior to the conduct of the auction and prior to the approval of the auctioneer’s compensation. With the advance approval of the Court such buyer’s premium may constitute the compensation payable to the auctioneer in lieu of other compensation. Otherwise, any buyer’s premium shall be treated as part of the sale price that is payable to the estate, unless the Court expressly orders otherwise. No auctioneer be entitled to both a “buyer’s premium” and a separate fee unless the Court has expressly authorized such compensation in advance of an auction. (d) Purchase Prohibited. An auctioneer, or officer, director, stockholder, agent or employee of an auctioneer, must not purchase directly or indirectly, or have a financial interest in the purchase of, any property of the estate that the auctioneer has been employed to sell. (e) Bond. An auctioneer employed pursuant to section 327 of the Bankruptcy Code must not act until the auctioneer files 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, which is conditioned upon: (1) the faithful and prompt accounting for all monies and property that may come into the auctioneer’s possession; (2) compliance with all rules, orders, and decrees of the Court; and (3) the faithful performance of the auctioneer’s duties. (f) Blanket Bond. In lieu of a bond in each case, an auctioneer may be permitted to 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. (g) Application for Commissions. An auctioneer shall file an application with the Court for approval of commissions on not less than seven (7) days’ notice to the debtor, the trustee, the United States Trustee and each committee. No application shall be granted unless the report of sale referred to in Local Bankruptcy Rule 6004-1(f) has been filed.
Source of truth
(a) No Official Auctioneer. There shall be no official auctioneer. (b) Compensation. Unless the Court orders otherwise for cause, compensation and reimbursement of expenses shall be allowed to an auctioneer for sales of property as follows: (1) commissions on each sale conducted
- Official source
- S.D.N.Y. (Bankr.) — Local Rules (U.S. Bankruptcy Court for the Southern District of New York)
- Source health
- Healthy · checked November 14, 2026
- Effective date
- September 30, 2024
- Last verified
- November 3, 2026benchpath-nyfed-rules-2026-11-03
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