Restrictions on Approving Court Appointments

U.S Code last checked for updates: Jan 30, 2025

Rule 5002.

(a)

Appointing or Employing Relatives.

(1)

Trustee or Examiner. A bankruptcy judge must not approve appointing an individual as a trustee or examiner under § 1104 if the individual is a relative of either the judge or the United States trustee in the region where the case is pending.

(2)

Attorney, Accountant, Appraiser, Auctioneer, or Other Professional Person. A bankruptcy judge must not approve employing under § 327, § 1103, or § 1114 an individual as an attorney, accountant, appraiser, auctioneer, or other professional person who is a relative of the judge. The court may approve employing a relative of the United States trustee in the region where the case is pending, unless the relationship makes the employment improper.

(3)

Related Entities and Associates. If an appointment under (1) or an employment under (2) is forbidden, so is appointing or employing:

(A)

any entity—including any firm, partnership, or corporation—with which the individual has a business association or relationship; or

(B)

a member, associate, or professional employee of such an entity.

(b)

Other Considerations in Approving Appointments or Employment.

A bankruptcy judge must not approve appointing a person as a trustee or examiner—or employing an attorney, accountant, appraiser, auctioneer, or other professional person—if the person is, or has been, so connected with the judge or the United States trustee as to make the appointment or employment improper.

(As amended Apr. 29, 1985, eff. Aug. 1, 1985; Apr. 30, 1991, eff. Aug. 1, 1991; Apr. 2, 2024, eff. Dec. 1, 2024.)