6007-1:  ABANDONMENT OF PROPERTY OF THE ESTATE: Notice of Intent; Objection; Hearing

** UPDATED 10-21-2024 ** 

Bankruptcy Code section 554(b) allows a trustee to abandon property of the estate that is of inconsequential value and benefit to the estate.   

FRBP 6007(a) provides the procedure for a debtor or trustee to abandon property of the estate.  That procedure is to file a "Notice of Intent to Abandon" and serve the notice using the procedure of LBR 9013-1(o), to give other parties the opportunity to file an opposition and request a hearing.  The court has LBR forms for serving notice, declaring that no party filed an opposition, and for serving notice of a hearing if a party requests a hearing.  See links below.

The Board of Judges has approved edits to LBR 6007-1 to amend it in three ways:

1. Remove the procedure that was already provided in FRBP 6007(a), so as not to duplicate provisions that are no different from the procedure of FRBP 6007(a); Thus, the provisions of LBR 9013-1(o) begin at a place that assumes a trustee or debtor has already filed and served a Notice of Intent to Abandon.
2. Clarify that IF a debtor or trustee ALSO desires that the court enter an order approving of the abandonment of property of the estate, the Notice of Intent to Abandon must be supported by a declaration that addresses the elements of Bankruptcy Code section 554; and
3. Clarify that if a party opposes the Notice of Intent, a hearing will be set and the debtor or trustee may file a reply document that meets the standard of LBR 9013-1(g).