Before a bankruptcy auctioneer can be retained by a trustee he or she must file a bankruptcy auctioneer bond. A bankruptcy auctioneer is considered an "agent of the court" and is therefore regulated by specific laws to which the auctioneer must adhere. The bankruptcy trustee overseeing a case is ultimately responsible for the auctioneer however the federal code imposes specific duties on the auctioneer. The bankruptcy auctioneer surety bond generally guarantees but is not restricted to insuring the following:
The bankruptcy auctioneer bond must be written to the United States as Obligee and executed in an amount that is sufficient to cover all receipts of the sale(s) in the bankruptcy case. Local and state auctioneer license bonds are not acceptable as alternatives to the requirement. The bond penalty is fixed either by local court rules or by the bankruptcy trustee supervising the liquidation. The bankruptcy auctioneer bond may cover more than one bankruptcy case. If the surety bond is written in this "blanket" form, then the auctioneer and trustee must ensure that the bond amount is sufficient to cover the sales amounts of ALL cases for which the auctioneer has been hired. Further rules of conduct and auctioneer responsibilities can be found in the Bankruptcy Trustee Handbook.
Obtaining a bankruptcy auctioneer bond is simple. Requests for bonds up to $100,000, we need only a complete commercial surety bond application and the pertinent court documents. Larger auctioneer surety bond requests must be accompanied by the applicant's current financial statement.