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RULE 6007-1

ABANDONMENT

  1. Any party in interest, other than a trustee, who seeks to have the trustee or debtor-in-possession abandon property of the estate may do so by complying with the following:
    1. Prepare a report and notice of intention to  abandon property, applicable form available online, present the original to the trustee or counsel for debtor in possession, and provide to that person the following documentation or information:
      1. Evidence of indebtedness, including promissory notes, statements of account or the like;
      2. Affidavit of amount due with calculations set forth in detail;
      3. Evidence of perfection of the lien or encumbrance including mortgages, security agreements, UCC filings and copies of titles showing liens; and
      4. Evidence as to value.
    2. Once the trustee or debtor-in-possession has signed the report and notice, the party in interest seeking abandonment of the property shall serve the signed report and notice on all creditors and parties in interest, except:
      1. If the property to be abandoned is encumbered by liens greater than the value of the property, notice shall be given only to the debtor, debtor's attorney, any known lien holders, the creditors' committee, if any, and the United States trustee’s office.
      2. If the property to be abandoned is not encumbered by any liens but has a value totaling less than $500.00, notice shall be given to the debtor, debtor's attorney, the creditors' committee, if any, and the United States trustee’s office.
    3. The party in interest who has requested the abandonment shall file the report and notice, and a certificate of service with the Clerk.
  2. A trustee or debtor-in-possession that seeks to abandon property of the estate may do so by complying with the following:
    1. Prepare a report and notice of the movant’s intention to abandon estate property, form available online;
    2. Serve the report and notice on all creditors and parties in interest, except:
      1. If the property to be abandoned is encumbered by liens greater than the value of the property, notice shall be given only to the debtor, debtor’s attorney, any known lien holders, the creditors’ committee, if any, and the United States trustee’s office.
      2. If the property to be abandoned is not encumbered by any liens but has a value totaling less than $500.00, notice shall be given to the debtor, debtor’s attorney, the creditors’ committee, if any, and the United States trustee’s office.
    3. File the report and notice and a certificate of service with the Clerk.
  3. The report and notice may be filed on negative notice pursuant to Local Rule 2002-2. Unless an objection is timely filed, the abandonment will be deemed final and no order will be issued.

 

Advisory Committee Notes
2023 Amendment

The amended rule includes stylistic changes to refer to applicable forms and the Local Rules Links page that provides links to various Official Forms and Local Forms.  At the time of this amendment the applicable form, Local Form 7-7, was titled “Report and Notice of Trustee’s Intention to Abandon Property of the Estate” but in practice was used by debtors in possession as well. Consistent with these amendments the Clerk has revised the title of Local Form 7-7 (now, “Report and Notice of Intention to Abandon Property of the Estate”) and content to reflect this broader practice. Other amendments to the rule confirm this practice. This amended rule also includes stylistic changes for purposes of internal consistency.
 

2020 Amendment

The amended rule includes only stylistic changes. The format of subdivisions is changed to maintain a consistent style across all rules. Subdivision (A)(1) is amended to maintain a consistent style for references to the court’s website. Subdivision (C) is amended to clarify the applicability of the negative notice period.