Abandoning/Surrendering Property - Revision history

Alanfields: /* Constructive Abandonment */

2017-06-10T21:22:24Z

‎Constructive Abandonment

Alanfields: /* General Rule */

2015-11-03T21:59:57Z

‎General Rule

Alanfields: Created page with "==General Rule== The trustee may "abandon" property in chapter 7, 11, & 13 cases under 11 USC § 554. 11 U.S. Code § 554 - Abandonment of property of the estate (a) Af..."

2015-11-03T21:38:38Z

Created page with "==General Rule== The trustee may "abandon" property in chapter 7, 11, & 13 cases under 11 USC § 554. 11 U.S. Code § 554 - Abandonment of property of the estate (a) Af..."

New page

==General Rule==

The trustee may "abandon" property in chapter 7, 11, & 13 cases under 11 USC § 554.
11 U.S. Code § 554 - Abandonment of property of the estate
(a) After notice and a hearing, 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.
(b) On request of a party in interest and after notice and a hearing, the court may order the trustee to abandon any property of the
estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.
(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at
the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.
(d) Unless the court orders otherwise, property of the estate that is not abandoned under this section and that is not administered in
the case remains property of the estate.

In a Chapter 7, there is separate authority to abandon under 11 USC § 725

11 U.S. Code § 725 - Disposition of certain property
After the commencement of a case under this chapter, but before final distribution of property of the estate under section 726 of this
title, the trustee, after notice and a hearing, shall dispose of any property in which an entity other than the estate has an interest,
such as a lien, and that has not been disposed of under another section of this title.

===Notice and Hearing requires only an "opportunity for a hearing"===

See [https://www.law.cornell.edu/uscode/text/11/102#.VjkpzberRBI 11 USC 102] and [https://www.law.cornell.edu/rules/frbp/rule_6007 Bankruptcy Rule 6007] and its commentary.

Common practice is for the trustee to file a "Notice of Intent to Abandon" that is self-effectuating if no creditor requests a hearing.

===In Chapter 13, sometimes referred to as "Surrender"===

See [https://www.law.cornell.edu/uscode/text/11/1325 11 USC 1325](a)(5)(C).

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 ===Constructive Abandonment===
-Code Section 554(c) states that any property scheduled which is not administered upon closing the bankruptcy case is abandoned to the debtor.   What this means is that if a parcel of property, which is listed in the bankruptcy schedules, is not sold, allowed as exempt, or specifically abandoned by the trustee, it is not administered and is considered to be abandoned to the debtor.
+Code Section [https://www.law.cornell.edu/uscode/text/11/554 11 USC 554(c)] states that any property scheduled which is not administered upon closing the bankruptcy case is abandoned to the debtor.   What this means is that if a parcel of property, which is listed in the bankruptcy schedules, is not sold, allowed as exempt, or specifically abandoned by the trustee, it is not administered and is considered to be abandoned to the debtor.
 If an asset wasn't scheduled at all, it may remain as a bankruptcy asset
@@ Line 46: / Line 46: @@
 *Schedule A listing the property as an asset; and
 *The trustee’s final report showing that the property was not sold or otherwise used by the trustee.
 ==In Chapter 13, sometimes referred to as "Surrender"==
 See [https://www.law.cornell.edu/uscode/text/11/1325 11 USC 1325](a)(5)(C).

@@ Line 25: / Line 25: @@
 Common practice is for the trustee to file a "Notice of Intent to Abandon" that is self-effectuating if no creditor requests a hearing.
-===In Chapter 13, sometimes referred to as "Surrender"===
+==Insuring Standards==
 See [https://www.law.cornell.edu/uscode/text/11/1325 11 USC 1325](a)(5)(C).