Who determines the auctioneer’s fee in federal bankruptcy court?

In federal bankruptcy court, the determination of the auctioneer’s fee is made by the court. This is because the auction process must follow specific legal standards and regulations, especially in bankruptcy cases where the primary concern is to ensure the equitable treatment of all creditors involved. The court has the authority to review and approve the fees based on the necessity of the services provided, the complexity of the auction, and what would be considered reasonable compensation in that specific context.

The involvement of the court helps to prevent potential conflicts of interest and ensures that all parties are treated fairly. It also provides a mechanism for oversight, which is crucial in bankruptcy situations where the assets are being sold to repay creditors. In contrast, the other options do not hold authority in this legal setting. The auctioneer setting their own fee would lead to potential conflicts, while a buyer agency or local government does not have jurisdiction over such matters in a federal bankruptcy process.