Local Rule 6004–1: SALE OF ESTATE PROPERTY
Bankr. S.D. Ohio — General rule
6004–1 SALE OF ESTATE PROPERTY
(a) General. Unless otherwise ordered by the court, the notice of a proposed use, sale or lease of property other than in the ordinary course of business shall be filed and served by the trustee, debtor in possession, or chapter 12 or chapter 13 debtor.
(b) Chapter 7 and 11 Cases — Sales of Real and Personal Property.
(1) Notice. Notice of the proposed use, sale or lease of property other than in the ordinary course of business shall contain:
(A) a description which reasonably informs parties in interest of the property to be used, sold or leased. If the property is real property, its address shall be set forth with the legal description, if available;
(B) the terms and conditions of the proposed use, sale or lease, including the price and any contingencies;
(C) the date, time and place of any public sale;
(D) in a private sale the name of the buyer and disclosure of any relationship between the buyer and the debtor or a statement that there is no relationship;
(E) the value of the property and the basis upon which the movant determined that the suggested price for the use, sale or lease of such property is in the best interest of the estate; and
(F) a statement that a written objection to the proposed use, sale or lease, together with a request for hearing, must be filed and served pursuant to LBR 9013–3 not later than twenty-one (21) days from the date of service of the notice, unless the notice period is shortened by order of the court, and that in the absence of objection the property may be used, sold or leased without further notice.
(2) Report of Sale.
(A) Contents of Report; Time to File. Unless otherwise ordered by the court, within twenty-one (21) days after the sale of any property not in the ordinary course of business, and prior to disbursement of any proceeds of sale, the trustee or debtor in possession shall file a report of sale. This report shall include, in addition to what is required by Rule 6004(f)(1):
(i) the date, time and place of sale;
(ii) a calculation of the compensation allowable under the order of appointment; and
(iii) a statement of the expenses of sale.
(B) Disbursement of Sale Proceeds. Unless otherwise ordered by the court, all proceeds of a sale shall be paid directly to any appointed trustee or the debtor in possession. No disbursement of proceeds shall be made without a specific order of the court authorizing the disbursement, except for payment to secured creditors, payment to debtors for exempt proceeds, and payment for expenses of sale up to $2500. In addition, disbursements of auctioneers' fees and brokers' commissions may be paid without additional order of the court, if payment is consistent with the terms of the order approving the sale or authorizing the appointment of the auctioneer or broker.
(c) Chapter 12 and 13 Cases — Sales of Personal Property.
(1) Application to the Trustee. Unless otherwise ordered by the court, use, sale or lease of property other than real property shall be by written application of the debtor to the trustee. Subject to Rule 6004(d), the application shall contain notice as in (b) above and shall be served according to Rule 2002(a)(2) and LBR 9013–3. The debtor shall not file the application with the clerk.
(2) Objection to the Application; Denial of the Application. An objection, if any, shall be served on the trustee, the debtor, and the debtor's attorney and shall not be filed with the court. If no objections are served and the trustee approves the application, the trustee shall file the approval and the application and the debtor may use, sell or lease the property in accordance with the terms and conditions approved by the trustee. If an objection is served, the trustee shall not approve the application. Further, if an objection is served or the use, sale or lease is not approved by the trustee, the debtor may file a motion to use, sell or lease the property and such motion shall contain the information required in (b)(1) above. The motion shall request a hearing and shall include as an attachment copies of any objections and/or the trustee's denial of the application.
(3) Nominal Sale Exception. If the aggregate value of the property to be sold is less than $1,000 and the property is unencumbered, it is not necessary for the debtor to make an application to the trustee.
(d) Chapter 12 and 13 Cases — Sales of Real Property. Unless otherwise ordered by the court, sale of real property shall be in accordance with the following:
(1) Motion Requirements. The debtor shall file a motion after a contract of sale is procured. The motion shall provide the following minimum information:
(A) whether the debtor's plan has been confirmed;
(B) the address of the property;
(C) whether the property is the debtor's residence;
(D) the sale price;
(E) the valuation of the property as set forth in the schedules and in any appraisal valuation submitted pursuant to LBR 3015–3(e)(3);
(F) the name of each mortgagee or lienholder;
(G) the estimated amount of sale proceeds to be retained by the debtor;
(H) the approximate amount of sale proceeds to be paid to the plan;
(I) whether the plan provided for the sale; and
(J) the name of the buyer and disclosure of any relationship between the buyer and the debtor or a statement that there is no relationship.
(2) Closing Procedure. The closing agent shall coordinate with the trustee in making the arrangements for the closing and shall obtain the trustee's approval before proceeding with the closing. The closing agent shall deliver a copy of the closing statement to the trustee, debtor, and debtor's attorney at least one (1) working day before the closing. The trustee is authorized to permit the closing agent to make direct disbursements on behalf of the trustee at closing on any claims so provided for by the plan or court order in which event it will not be necessary for the trustee to attend the closing. Any of these disbursements shall be considered as if made by the trustee for the purposes of the trustee collecting the percentage fee fixed pursuant to 28 U.S.C. § 586(e)(1)(B).
(3) Proceeds and Closing Statement. If the trustee does not attend the closing, the closing agent shall cause to be delivered to the trustee within three (3) working days after closing, the net proceeds, if any, and a copy of the signed closing statement. Such statement shall show:
(A) the amount paid to each lienholder;
(B) the amount of any real estate taxes paid;
(C) the name of and amount paid to any realtor;
(D) any deductions from the sale proceeds with an explanation therefore;
(E) any closing costs; and
(F) the calculation of the total deductions from the sale proceeds and the amount of sale proceeds being paid to the plan.
(e) Chapter 12 and 13 Cases — Report of Sale. The trustee's final report and account shall serve as the report of sale and distribution of the proceeds therefrom, in lieu of a report required by (b)(2) above in chapter 7 and 11 cases.