Local Rule 6004-1: Sale of Estate Property.

Rule 6004-1. Sale of Estate Property.

(a) Proposed sale of property–under $2,500.00. A notice of a proposed sale of property with an aggregate gross value less than $2,500.00 pursuant to Fed.R.Bankr.P. 6004(d) shall conform to Appendix 6A, shall set forth a last date (month, day, year) for filing an objection or other response that is 14 days after service of the notice, and shall be served on parties in interest not electronically served, including, but not limited to, any party who has a lien against or other interest in the property.

(b) Proposed sale of property–$2,500.00 or more.

(1) Motion. In addition to the information required by Fed.R.Bankr.P. 6004(g), a motion for authority to sell property with an aggregate gross value of $2,500.00 or more shall describe the property to be sold, state the property's value and how that value was determined, state the terms and conditions of the proposed sale, and identify and state the value of each lien or other encumbrance on the property to be sold. If the property is to be sold by private sale, the motion shall also identify the proposed buyer(s) and the sale price. If the property is to be sold at public auction, the motion shall also state the auction date, time, and location, the name of any known opening bidder, the amount of any known opening bid or any minimum opening bid, and the amount of any minimum bidding increments.

(A) Any request for a waiver of the requirement that a report of sale be filed pursuant to Fed.R.Bankr.P. 6004(f)(1) shall be included in the motion and shall state the cause therefor.

(B) Any request that the order authorizing the use, sale, or lease of property not be stayed under Fed.R.Bankr.P. 6004(h) shall be included in the motion and shall state the cause therefor.

(2) Notice. A notice of motion for authority to sell property with an aggregate gross value of $2,500.00 or more shall conform to Fed.R.Bankr.P. 2002(c)(1) and Bankr. D.S.D. R. 2002-1(d) and Appendix 2F and shall set forth a last date (month, day, year) for filing an objection or other response that is 21 days after the service of the motion and the notice of motion.

(3) Service. A motion under paragraph (1) above shall be served on parties in interest not electronically served, including, but not limited to, any party who has a lien against or other interest in the property. A notice under paragraph (2) above shall be served on all creditors and other parties in interest not electronically served.

(c) Report of sale. A report of sale by a debtor under Fed.R.Bankr.P. 6004(f)(1) shall conform to Appendix 6B. A report of sale by a trustee under Fed.R.Bankr.P. 6004(f)(1) shall either conform to Appendix 6B or be filed as a docket text entry using the CM/ECF event "Report of Sale (text entry only)" found under "Bankruptcy–Trustee/US Trustee."

REFERENCES: 11 U.S.C. § 363; Fed.Rs.Bankr.P. 2002(c)(1) and 6004.

Practice Pointers: A chapter 7 trustee should file a motion for authority to sell property when the trustee proposes to allow a debtor to retain estate property. A chapter 7 trustee should file a motion for turnover of property if the debtor is holding property in excess of claimed exemptions, the trustee needs physical possession of the property to sell it, and the debtor fails to cooperate.

If any party is served by mail or under the provisions of Fed.R.Civ.P. 5(b)(2)(D) [leave with clerk] or (F) [other means consented to], the notice periods stated above shall be increased three days pursuant to Fed.R.Bankr.P. 9006(f).