Local Rule RULE 6004–2: Sale of Estate Property by Chapter 13 Debtor After Confirmation

RULE 6004–2 Sale of Estate Property by Chapter 13 Debtor After Confirmation

(a) Sale of property free and clear of liens and interests of persons other than the debtor. A debtor seeking to sell property of the estate free and clear of liens and interests of parties other than the debtor outside of the ordinary course of business of the debtor following confirmation of a chapter 13 plan shall be brought by motion. The motion shall clearly state the liens and interests on the property. The debtor shall provide the chapter 13 trustee, all creditors, and parties in interest at least twenty-one (21) days' notice of the motion seeking such approval, unless the notice period has been shortened by the Court for cause shown. If no objection is timely filed, the Court may enter an order endorsed by the chapter 13 trustee approving the sale or refinancing without holding a hearing.

(b) Sale of property free and clear of liens and interests of only the debtor. A debtor seeking to sell property of the estate free and clear of liens and interests of only the debtor outside of the ordinary course of business of the debtor following confirmation of a chapter 13 plan may file a notice of private sale in lieu of a motion filed under section (a). The notice shall clearly state the liens and interests on the property. The debtor shall provide the chapter 13 trustee, all creditors, and parties in interest at least twenty-one (21) days' notice, unless the notice period has been shortened by the Court for cause shown. If no timely written objection is filed, the sale shall be deemed authorized upon expiration of the notice period.

(c) In addition to setting forth the information required by Bankruptcy Rule 2002(c)(1), the motion or notice filed pursuant to subsections (a) and (b) of this Rule shall state: (1) the total proposed sale price or maximum amount to be secured by the refinancing, as applicable, and, in the case of refinancing, the amount of existing secured debt to be paid thereby; (2) the amount of the sale or loan proceeds to be applied to the debtor's obligations under the confirmed plan; (3) whether such payment will result in full payment of all allowed claims; and (4) if all allowed claims will not be paid in full, the amount of the sale or loan proceeds that will be paid to the debtor.