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Abandonment of Property

Local Rule Number: 
Rule 6007-1
6000 Series

(A)       Abandonment by Chapter 7 Trustee at §341 Meeting.  Notice shall be provided under Local Rule 2002-1(C)(1), that the chapter 7 trustee may abandon at the §341 meeting or post-conversion meeting, all property that the trustee has determined is of no value to the estate.  The trustee shall, within two business days after the meeting, file a report of property abandoned at the meeting of creditors, and any objection to the abandonment must be filed within 14 days after the meeting.  The trustee’s filing of a report of no distribution shall constitute an abandonment of all scheduled assets, but the withdrawal of a report of no distribution shall revest ownership of scheduled assets in the estate.  If the chapter 7 trustee wishes to abandon property other than at the §341 or post-conversion meeting, the provisions of subdivision (B)(1) of this rule must be followed.

(B)       Other Abandonment.  Except for abandonment by a chapter 7 trustee at the §341 meeting or post-conversion meeting, the following provisions apply to abandonment by a trustee or debtor in possession in all cases:

(1)        Abandonment by Chapter 7, 11 or 12 Trustee or Debtor in Possession by Negative Notice.  Notices of proposed abandonment either by a trustee (other than by a chapter 7 trustee at the §341 meeting) or by a chapter 11 or 12 debtor in possession, shall include the following bulletin at the conclusion of the body of the notice, in print either highlighted or bold, so as to make it more prominent than any other text:

Pursuant to Bankruptcy Rule 6007, the proposed abandonment will be deemed approved without necessity of a hearing or order, if no objection is filed and served within 14 days after the date of service of this notice.

Upon receipt of a timely filed objection or other response, the proponent of the abandonment shall promptly file the Local Form “Certificate of Contested Matter”.  If a certificate of contested matter is filed, the court will schedule a hearing in accordance with the procedures contained in Local Rule 9073-1(A).  The “Notice of Hearing” shall be served by movant in accordance with the procedures contained in Local Rule 9073-1(B).

When the bulletin in this subdivision is included in the notice, the failure of a party, properly served, to file an objection within 14 days after service of the notice, shall be deemed a consent to the proposed abandonment.

(2)        Abandonment by Chapter 13 Trustee.  Abandonment by the chapter 13 trustee shall be pursuant to Bankruptcy Rule 6007.