Rule 6007-1

Abandonment of Property

(a) Definitions.  For purpose of this Local Rule, the term “trustee” does not include a “debtor in possession”.

(b) Procedure.

(1) Notice of Intent to Abandon.  A case trustee or debtor in possession who desires to abandon property of the estate may seek to do so by a notice of intent to abandon, without necessity for filing a motion to abandon.

(2) Motion to Compel Abandonment.  A party in interest who seeks to compel the case trustee or debtor in possession to abandon property of the estate shall do so by motion.

(c) Notice.

(1) By Trustee.  A trustee’s notice of intent to abandon shall be served by the clerk.

(2) By Debtor in Possession.  A debtor in possession’s notice of intent to abandon shall be served by the debtor in possession.

(3) By Movant.  Notice of a party in interest’s motion to compel abandonment shall be prepared and served by the movant.

(4) Contents.  The notice of intent or motion shall briefly describe the nature or type of property to be abandoned, including the address of the property if applicable, and the basis upon which the case trustee, debtor in possession or movant concludes that the property is burdensome to the estate or that it is of inconsequential value and benefit to the estate.

(5) Parties to be Served.  The notice shall be served on those listed in Rule 6007(a).

(d) Objections.  Objections must be filed with the court and served upon the person(s) specified in the notice, within 14 days of service of the notice.

(e) Hearings.  Unless a timely objection is filed, a notice of intention or motion to abandon property shall not be set for hearing unless otherwise ordered by the court.

(f) Orders. 

(1) If No Objection is Filed and Served.  If no timely objection to a notice of intent or motion to abandon is filed and served, the property is deemed abandoned without further order of the court unless the court otherwise directs.  If an entity desires an order of the court authorizing or directing, and confirming, the case trustee’s or debtor in possession’s abandonment of the property, that entity may submit to the court a proposed form of order, together with a certificate which recites (A) the circumstances of compliance with the notice requirements of Rule 6007 and this Local Rule, (B) that the time for objection has expired, and (C) that no objection has been filed and served, and 3 days have passed since the last day for objections.  If the proposed form of order has been approved as to form by the case trustee or debtor in possession, it may be signed and entered forthwith.  Otherwise, it shall be lodged and a copy thereof shall be served on the case trustee and debtor in possession.

(2) If Objection is Filed.  If a timely objection is filed, the party requesting the abandonment shall obtain a hearing date from the court and file a notice of hearing, and serve said notice on the objecting party and also prepare and file a certificate of service  prior to the hearing.

(3) If the party submitting a certificate pursuant to paragraph (f) (1) has actual knowledge that an objection has been filed or served, but was untimely, the certificate should so state.

Related Code and Rules:  11 U.S.C. § 554; Rules 6007, 9013, 9014, 3022 and 5009.

Committee Notes 2009:  Time deadlines have been amended to be consistent with amendments to the Federal Rules of Bankruptcy Procedure, effective December 1, 2009.

Committee Notes 2007: No substantive changes to this rule. Subsection (c)(5) was added to note which parties are to be served. One other change was made -- to subsection (f)(2) -- to reflect current practice in the bankruptcy court, which is that upon an objection to a motion under this rule, the moving party is responsible to request and notice a hearing and serve same on the objecting party and file a certificate of service.

Comittee Notes (from prior rule changes):

(1) This Local Rule implements §554 of the Code and Rule 6007.  This Local Rule has no application to dispositions of property pursuant to §363 of the Code or Rules 6004 or 7001(3), which involve the sale or lease of property of the estate.

(2) Rule 2002 and Local Rule 2002-1 should be consulted for general provisions relating to notice.


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