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Notation of Abandonment

 Official Procedure Last Change October 14, 2016

Notation of Abandonment

General Information

  • The Notation of Abandonment is docketed 15 days after the ”Trustee’s Report of No Distribution” on cases where the Notice of Meeting of Creditors was issued on or after August 29th, 2016, provided that no objections have been filed. For cases where the Notice of Meeting of Creditors was issued before that date, an Order in No Asset Case is issued instead. The Notation consists of the following docket text:

Pursuant to Local Bankruptcy Rule B-6007-1, all property of the estate listed in the schedules filed by the debtor(s) has been abandoned.

  • The Notation deems all scheduled property of the bankruptcy estate to have been abandoned.
  • After the Notation is entered, secured creditors with non-avoidable, perfected security interests in any such property are granted limited relief from the automatic stay to pursue their valid claims against such property in accordance with applicable law.
  • If the Trustee has previously filed a Report of No Distribution, they can withdraw it before filing a Report of Possible Assets, although this is not necessary since the filing of the Report of Possible Assets serves as a withdrawal of Report of No Distribution.  However, if the Court has already entered an Order in No Asset Case or docketed the Notation of Abandonment, this Order or Notation cannot be withdrawn by the Trustee since it was entered by the Court, not filed by the  Trustee. In this circumstance, the Trustee must file a Motion for Relief from Order pursuant to FRBP 9024 along with a 14-day objection notice if any of the assets to be administered were scheduled, followed by the Report of Possible Assets. If the Motion for Relief is required, the Court will not take any action on the Report of Possible Assets unless the Motion has been filed and granted. The Motion for Relief can contain language indicating that the Report of No Distribution is being withdrawn, although as previously mentioned, this is not necessary since a Report of Possible Assets serves this purpose.   View flow chart of the procedure for changing which assets are being administered