Auctioneer's Bond Bond - United States Bankruptcy Court in All States
Table of Contents
Brief Summary
A bankruptcy auctioneer usually cannot hold the sale until a bond running to the United States is on file in the amount the court or local rule demands. Getting the bond lined up before the application to employ is heard keeps the sale date from slipping, and a blanket bond can cover every estate you work in so you are not starting over each case.
When a trustee or debtor in possession hires an auctioneer under 11 U.S.C. 327, the court order approving that employment sets the auctioneer's pay under Federal Rule of Bankruptcy Procedure 6005, and most districts also require the auctioneer to post a surety bond in favor of the United States. The amount is not national. It comes from the local rule or the court's order, often tied to the value of the property being sold, and some districts allow a single blanket bond for all cases.
We can help with all All States bonds!
How to Apply for an Auctioneer's Bond Bond:
- Read the local bankruptcy rule on auctioneers for the district where the case is pending.
- Get the bond amount from the local rule or the order approving your employment.
- Decide whether a per estate bond or a blanket bond fits your practice, if the district allows blanket bonds.
- Name the United States of America as obligee unless the rule or order says otherwise.
- Attach the bond or a copy to the application to employ where the local rule requires it.
- Confirm filing with the Clerk or United States Trustee before the sale.
Detailed Information About the All States Auctioneer's Bond Bond:
The amount depends on the district
There is no single federal bond figure for bankruptcy auctioneers. Federal Rule of Bankruptcy Procedure 6005 says the order approving an auctioneer's employment must set the compensation, and that no residence or licensing requirement disqualifies a person from being hired. The bond itself comes from each bankruptcy court's local rules and the order approving employment. Check the local rule for the district where the case is pending before you apply for the bond.
An example: District of Connecticut
Connecticut's Local Bankruptcy Rule 6005-1, effective March 16, 2026, shows how detailed these rules can be. The application to employ must attach a bond for the auction in an amount that exceeds the estimated value of the property to be sold by at least 25 percent. The auctioneer cannot act until giving, in each estate and at the auctioneer's own expense, a surety bond in favor of the United States, approved by and in a sum fixed by the court. The bond must be conditioned on prompt accounting for all money and property received, compliance with the court's rules and orders, and faithful performance of duties. It cannot be cancelled without 60 days notice to the Clerk and the United States Trustee. Instead of a bond in each case, an auctioneer may file a blanket bond of $1,000,000 in favor of the United States covering all cases. Bond costs are a reimbursable sale expense, prorated where a blanket bond is used.
Other districts set their own figures and conditions, so the Connecticut numbers apply only there.
What the bond protects
The auctioneer collects sale proceeds that belong to the bankruptcy estate. The bond protects the estate and its creditors if the auctioneer fails to account for or turn over that money or property, or does not follow the court's orders. The United States is named as obligee because the bond secures performance in a federal court proceeding.
Getting it issued
Have the case name and number, the court, the estimated value of the property, and the amount fixed by the local rule or order. If you work regularly in one district, ask whether a blanket bond is accepted there. Confirm the required form, any surety qualification, and where the original bond is filed with the court or the U.S. Trustee before it is issued. The premium is set by the surety based on the bond amount and the auctioneer's credit and financial history.
Eligibility and Requirements for an All States Auctioneer's Bond Bond:
- Bond in favor of the United States of America in most districts.
- Amount fixed by local rule or court order, often tied to the value of property being sold.
- Conditions covering accounting for estate money and property and compliance with court orders.
- Cancellation notice to the Clerk and United States Trustee where the rule requires it.
- Credit and financial review by the surety.
All States Auctioneer's Bond Bond FAQs:
It depends on the district. Each bankruptcy court sets its own rule. In Connecticut, for example, the bond attached to the application must exceed the estimated value of the property by at least 25 percent, and a blanket bond is $1,000,000. Check your district's local rule or the order approving your employment.
Not always. Some districts, including Connecticut, let an auctioneer file one blanket bond covering all cases. Others require a bond in each estate. The local rule controls.
Federal Rule of Bankruptcy Procedure 6005 says no residence or licensing requirement disqualifies a person from being employed as an auctioneer in a bankruptcy case. The court still has to approve your employment.
Under Connecticut's rule, the auctioneer gives the bond at their own expense, and bond costs can be reimbursed as a sale expense with court approval. Other districts handle reimbursement in their own rules.
