Official Procedure Last Change August 29, 2016
Order in No Asset Case
- The Order in No Asset Case is generated 31 days after the ”Trustee’s Report of No Distribution” on cases where the Notice of Meeting of Creditors was issued prior to August 29th, 2016, provided that no objections have been filed. For cases where the Notice of Meeting of Creditors was issued on or after that date, a Notation of Abandonment is issued instead.
- The Order abandons all scheduled property from the bankruptcy estate.
- After the Order in No Asset 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has already entered an Order in No Asset Case or docketed the Notation of Abandonment, this Order or Notation cannot be withdrawn by the Trustee since it was entered by the Court, not filed by the Trustee.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 The Motion for Relief can contain language indicating that the Report of No Distribution is being withdrawn, although as previously mentioned, this is not necessary since a Report of Possible Assets serves this purpose.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