Local Rule 6007-1: Abandonment of Estate Property.

Rule 6007-1. Abandonment of Estate Property.

(a) Notice of proposed abandonment of estate property by a trustee or debtor in possession. A notice of proposed abandonment by a chapter 7 trustee, a chapter 11 trustee, or a debtor in possession shall:

(1) conform to Appendix 6C and shall set forth a last date (month, day, year) for filing an objection or other response that is 14 days after the service of the notice;

(2) describe the property to be abandoned, its value, how the value was determined, and the facts and circumstances that demonstrate why the property is burdensome or of inconsequential value to the estate; and

(3) be served on all creditors and other parties in interest not electronically served, including, but not limited to, any party who has a lien against or other interest in the property to be abandoned.

(b) Motion to compel abandonment of estate property.

(1) Motion. A motion to compel a chapter 7 trustee, a chapter 11 trustee, or a debtor in possession to abandon certain property from the estate shall describe the property to be abandoned, its value, how the value was determined, and the facts and circumstances that demonstrate why the property is burdensome or of inconsequential value to the estate.

(2) Notice. A notice of the motion to compel abandonment shall conform to Bankr. D.S.D. R. 2002-1(a) and shall set forth a last date (month, day, year) for filing an objection or other response that is 14 days after service of the motion and the notice of motion.

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

(c) Proposed order. When a motion to compel abandonment of estate property is filed, the movant shall submit pursuant to Bankr. D.S.D. R. 9072-1(a) a proposed order granting the motion that conforms to Appendix 6D.

REFERENCES: 11 U.S.C. §§ 554 and 725; Fed.R.Bankr.P. 6007.

Practice Pointers: 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).

In addition to the sample order compelling abandonment at Appendix 6D, a sample order granting relief from the automatic stay and compelling abandonment is available on the Court's website at www.sdb.uscourts.gov under Local Rules and Forms, then All Local Forms, and then Relief from Stay and Abandonment Sample Order.