LOCAL BANKRUPTCY RULES

Rules 500-599 Trustees

RULE 503. AUTHORIZATION TO DISBURSE SMALL EXPENSES WITHOUT PRIOR ORDER

Until the filing of the trustee's final report and account in any Chapter 7 case pending in this district, the trustee is authorized to disburse up to a total of $500 for actual and necessary expenses without any prior order of the court. If any funds are disbursed without prior court order, the trustee shall account for such disbursements in the trustee's final report. This rule does not abrogate the discretion of each judge by order in any proceedings to modify the dollar amount of expenses authorized for disbursement under this rule.

Committee Note: This was promulgated as a general order on behalf of all bankruptcy judges on 20 November 1992. The purpose is to permit, subject to subsequent review, the prepayment of small expenses under 11 U.S.C. § 330(a)(2) so that it is unnecessary to come before the court on motions and notice for small routine expenses. All disbursements are subject to review at the end of the case. The last sentence in intended to make clear that this rule does not prevent the judges from exercising their present authority to amend the dollar amount in the future without necessity for a rule change.