Local Rule 6007–1: ABANDONMENT — Bankr. S.D. Ohio

6007–1 ABANDONMENT

(a) Obtaining Abandonment.

(1) Request for Abandonment. When a party requests an abandonment and follows the notice procedure prescribed in (b) below, and no objection has been filed, that party shall prepare and submit to the trustee an abandonment document, which the trustee shall execute and return within fourteen (14) days of its receipt.

(2) Motion. A party unable to secure an abandonment from a trustee may file a motion for abandonment pursuant to Rule 6007(b).

(3) General. The trustee may execute abandonments until the case is closed.

(b) Notice Procedure in Chapter 7 Cases.

(1) In § 341 Meeting Notice. The § 341 meeting notice shall inform creditors and other parties in interest that the trustee may abandon property of the estate listed on the debtor's schedules upon the request of any party in interest or upon the trustee's determination that there is no equity in the property for the benefit of unsecured creditors and that the property is burdensome. The § 341 meeting notice shall also provide that further notice to creditors and other parties in interest is not required for the abandonment of any property unless a party in interest, before the conclusion of the § 341 meeting, files a request for further notice of abandonment with service of such notice on the trustee, or unless further notice is ordered by the court or required by the trustee.

(2) Further Notice of Proposed Abandonment. If further notice of proposed abandonment is required, the party proposing the abandonment shall give such further notice to the party filing the request for such notice, or to any party ordered by the court or required by the trustee to receive such further notice.

(3) Certificate of Service. Any notice under (b)(2) above shall contain a certificate of service, indicating that the appropriate parties have been served, and such certificate shall be filed.

(1) A description of the property, and if it is real property, its designated address, if the property has an address;

(2) A statement of the present fair market value of the property or an explanation why the statement is unnecessary or unavailable;

(3) A statement of the payoff amounts of any encumbrances on the property as of the date of the filing of the notice or motion, or an explanation why the statement is unnecessary or unavailable; and

(4) A statement that a written objection to the proposed abandonment, together with a request for hearing, must be filed and served on the trustee, the debtor, debtor's attorney and the party proposing abandonment, no later than twenty-one (21) days from the date of service of the notice or the property may be abandoned without further notice.

(5) The original notice pursuant to (b)(2) above filed with the court and the copy served on the trustee shall contain copies of all documents by which any encumbrances against the property were created or perfected, or an explanation why the copies are unnecessary or unavailable. The copy of such notice forwarded to creditors shall contain a statement that said copies or explanation are on file with the court and available for review by interested parties.

(d) Responsible Party. The creditor requesting and obtaining an abandonment from the trustee shall be responsible for insuring that the procedure outlined herein is followed.

(e) Abandonment Not Combined With Other Relief. A notice of abandonment or motion to compel abandonment may not be combined with any other request for relief.

(a) Notice of Abandonment

(1) Procedure. The trustee or debtor-in-possession may execute and file a notice of abandonment proposing to abandon or dispose of property of the estate in accordance with § 554 of the Code and Rule 6007. In chapter 7 cases, the notice of abandonment may be served in the limited manner provided in (b) below. If no objection to the proposed abandonment is filed within fourteen (14) days of service, the property is deemed abandoned without further notice.

(2) Contents. A notice of abandonment shall contain:

(A) A description of the property, and if it is real property, its street address if one is designated for the property;

(B) A statement of the present fair market value of the property or an explanation why the statement is unnecessary or a fair market value is unavailable;

(C) A statement of the payoff amounts of any encumbrances on the property as of the date of the filing of the notice (or motion pursuant to (c)(2)(A) below), or an explanation why the statement is unnecessary or unavailable;

(D) A statement that the trustee has reviewed copies of all documents by which any encumbrances against the property were created or perfected or an explanation why review is unnecessary; and

(E) A statement that a written objection to the proposed abandonment, must be filed and served on the trustee, the debtor, debtor's attorney and the party proposing abandonment, no later than fourteen (14) days from the date of service or the property is deemed abandoned without further notice.

(b) Limited Service of Notice of Abandonment in Chapter 7 Cases and Requests for Further Notice

(1) § 341 Meeting Notice. The § 341 meeting notice shall inform creditors and other parties in interest that the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate. listed on the debtor's schedules upon the request of any party in interest or upon the trustee's determination that there is no equity in the property for the benefit of unsecured creditors and that the property is burdensome to the estate. The § 341 meeting notice shall also provide that further notice to creditors and other parties in interest is not required for the abandonment of any property unless a party in interest, before the conclusion of the § 341 meeting, files a request for further notice of abandonment.

(2) Requests for Further Notice. Except as provided in (b)(1) above, no notice of abandonment will be served on any creditor unless a creditor files a request for further notice with the court before the conclusion of the § 341 meeting.

(3) Service of a Notice of Abandonment. A notice of abandonment shall be served on the debtor, trustee, United States Trustee and any party requesting further notice pursuant to (b)(2). The notice of abandonment shall include a certificate of service conforming to LBR 9013-3.

(1) Written Request to the Trustee. Any party desiring an abandonment of property of the estate may make a written request to the trustee no earlier than seven (7) days prior to the § 341 meeting. If the trustee determines that the property is burdensome to the estate or that the property is of inconsequential value and benefit to the estatethere is no equity in the property for the benefit of unsecured creditors and that the property is burdensome to the estate, the trustee shall execute and return a notice of abandonment to the requesting party within fourteen (14) days of its receipt. The requesting party may then file the executed notice of abandonment and serve it as follows.. If the notice of abandonment is filed prior to the conclusion of the § 341 meeting, the notice shall be served on all creditors and parties in interest. If the notice of abandonment is filed after the conclusion of the § 341 meeting, the notice may be served in accordance with (b)(3) above.

(A) Contents. The written request to the trustee shall include:

(i) A notice of abandonment for the trustee to execute that includes the contents described in (a)(2) above.

(ii) Copies of all documents by which any encumbrances against the property were created or perfected or an explanation why the copies are unnecessary or unavailable; and

(iii) A self-addressed stamped envelope if the requesting party wants the trustee to return the executed notice of abandonment by mail.

(2) Motion. Any party unable to secure an executed notice of abandonment from a trustee pursuant to (c)(1) above, may file a motion to compel abandonment pursuant to Rule 6007(b).

(A) Contents. The motion shall include:

(i) The information described in (a)(2)(A)-(C) above; and

(ii) Copies of all documents by which any encumbrances against the property were created or perfected or an explanation why the copies are unnecessary or unavailable. However, any motion served by mail on creditors need only include a statement that said copies or explanation have been filed with the court and are available for review by interested parties.

(B) Service in Chapter 7 Cases. In a chapter 7 case, if the motion is filed prior to the § 341 meeting, it shall be served on all creditors and parties in interest. If the motion is filed after the § 341 meeting has concluded, the motion may be served in the limited manner provided in (b) above.

(d) Abandonment Not Combined with Other Relief. A notice of abandonment or motion to compel abandonment may not be combined with any other request for relief.

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