B-6007-1. ABANDONMENT OF PROPERTY

(a)   Notice Procedure in Chapter 7 Cases

(1)      Abandonment by Trustee by Filing Report of No Distribution 

(A)      Language in Meeting of Creditors Notice

(i)     Report of No Distribution as Notice of Proposed Abandonment

The §341 meeting notice for a Chapter 7 case shall inform creditors and other parties in interest that the trustee’s filing of a report of no distribution shall serve as a notice of proposed abandonment pursuant to Fed.R.Bankr.P. 6007 of all property of the estate listed on the Debtor’s schedules (“Listed Property”).

(ii)    Obtaining Notice of Report of No Distribution

The §341 meeting notice shall also provide that no further notice to creditors and other parties in interest is required for the abandonment of any property to become effective fourteen (14) days after the filing of the report of no distribution unless a party in interest, no later than one (1) day before the first date set for the §341 meeting, files a request for further notice of abandonment.

(B)      Request for Notice

If a party files a request for notice pursuant to subparagraph (a)(1)(A)(ii) of this rule, then if the trustee files a report of no distribution, the Clerk shall give notice of that filing to the requesting party.  That notice shall give the requesting party fourteen (14) days from the service of the notice to object to the abandonment. If the request for notice was filed by an attorney participating in the Court’s CM/ECF system, then the notice of electronic filing generated at the time the report of no distribution was filed is sufficient.

(2)      Notation of Abandonment on Docket

Fourteen (14) days after the trustee’s filing of a report of no distribution, or if a party has requested notice of the filing of the report of no distribution, then fourteen (14) days after that notice, if no objection to the proposed abandonment is filed, the Clerk shall note on the case docket that pursuant to this local rule all Listed Property is deemed abandoned.

(3)      Trustee’s Notice of Possible Assets and Abandonment

In a Chapter 7 case where the trustee files a notice of possible assets and abandonment, the Clerk shall give notice to all creditors and parties in interest identifying those assets which are not being abandoned by the trustee, and of the proposed abandonment of all other Listed Property.

(4)      Trustee’s Abandonment After Report of Possible Assets

In a Chapter 7 case where the trustee files a notice of abandonment more than one (1) day after filing a notice of possible assets, the trustee shall distribute the notice to parties in interest and all creditors, except as otherwise provided in S.D.Ind. B-2002-1(b). The notice shall allow fourteen (14) days from the date of service to file objections. Along with the notice, the trustee shall file a certificate of service that complies with S.D.Ind. B-9013-2. A sample notice is available on the Court’s website.

(5)      Motion to Abandon Filed by Party in Interest

A motion to abandon in a Chapter 7 case filed by any party other than the trustee shall comply with subparagraph (b) of this rule.

(b)   Notice Procedure In All Other Chapters

A motion to abandon filed by a party in interest shall be served on the Debtor and parties in interest. Notice of the motion shall be distributed to the Debtor, parties in interest, and all creditors, except as otherwise provided by S.D.Ind. B-2002-1(b). The notice shall allow fourteen (14) days from the date of service to file objections. Along with the motion, the moving party shall file a copy of the notice and a certificate of service that complies with S.D.Ind. B-9013-2. A sample notice is available on the Court’s website.