MNB seal United States Bankruptcy Court
District of Minnesota
Clerk's Offices
Duluth Fergus Falls
Minneapolis St. Paul
 
 

Local Rules Part 6


PART VI

COLLECTION AND LIQUIDATION OF THE ESTATE 
 

  
RULE 6004-1. SALE OF ESTATE PROPERTY


(a) CHAPTER 7 CASES - GENERAL NOTICE. Except as otherwise provided in this rule, in a chapter 7 case the clerk shall give not less than 21 days notice to all entities listed in the matrix referred to in Local Rule 1007-2 of any proposed sale or other disposition of estate property by the trustee under Federal Rule of Bankruptcy Procedure 2002(a)(2) or (3), unless the trustee serves the notice and files proof of such service. The notice shall conform substantially to Local Form 6004-1(a).


(b) CHAPTER 7 CASES - LIMITED NOTICE.


(1) Generally; Form. If approved by the United States Trustee under subparagraph (3) of this paragraph, a trustee may sell property where the value to the estate is less than $5000, after serving notice of the proposed disposition only on the United States Trustee, each entity that has filed a request for notice or notice of appearance under Federal Rule of Bankruptcy Procedure 2002(I) or 9010(b), and each member of any creditors' committee. The notice shall conform substantially to Local Form 6004-1(a).


(2) Service of Notice. The notice shall be served not later than fourteen days before the date set for the proposed disposition. Along with the original notice, the trustee shall also serve on the United States Trustee 1) a proposed certificate approving use of limited notice and the proposed disposition and 2) proof of service of the notice.


(3) Approval. If the United States Trustee approves limited notice and the proposed disposition, the United States Trustee shall file the notice, the certificate and the proof of service.


(4) Disapproval. If the United States Trustee disapproves the limited notice or the proposed disposition, the trustee shall comply with paragraph (a) of this rule.


(c) CHAPTER 7 CASES - OBJECTIONS TO DISPOSITION. An objection to a proposed disposition under this rule shall be delivered to the trustee and the United States Trustee and filed not later than 12:00 o'clock noon the day before the date set for the proposed disposition. If the trustee receives an offer in writing to purchase property being sold at private sale before the time to file an objection to the sale has expired, the trustee shall file the offer and the offer shall be deemed an objection timely served and filed. If the trustee accepts the offer or another offer and the court approves the sale, the objection shall be deemed sustained.


(d) CHAPTER 7 CASES - CERTIFICATE. Upon request of the trustee, the clerk shall issue a certificate conforming substantially to Local Form 6004-1(d) if no objection has been timely filed or all filed objections have been resolved. Copies of the notice and the certificate of approval if any shall be attached to the certificate. If the court has entered any order with respect to the proposed disposition, the clerk shall issue the certificate with a copy of the order attached.


(e) CASES UNDER CHAPTERS 11, 12 AND 13. In a chapter 11, 12, or 13 case, a request for approval of any proposed sale, or other disposition of property of the estate shall be made by motion. Local Rules 2002-1 and 2002-4(a) govern preparation and service of the notice to creditors.


(f) INSTRUMENTS TRANSFERRING REAL PROPERTY. An instrument of transfer of real property located in Minnesota by the trustee or debtor in possession shall conform substantially to Local Form 6004-1(f).


Fed. R. Bankr. P. Reference 6007, 9019.



RULE 6007-1. ABANDONMENT


Local Rule 6004-1 applies generally to abandonments, except that the trustee in a chapter 7 case may use the limited notice of Local Rule 6004-1(b)(1) regardless of the value of the asset abandoned.



RULE 6007-2. ABANDONMENT - HAZARDOUS SUBSTANCES


If the trustee or debtor in possession proposes to abandon commercial or industrial property, whether real or personal, which the trustee or debtor in possession believes may contain a hazardous substance as defined in Minn. Stat. §115B.02, subd. 8 or other applicable law, or on which the trustee or debtor in possession believes environmental contamination or a release or threatened release of a hazardous substance may exist, the trustee or debtor in possession shall serve notice of the proposed abandonment on the Environmental Protection Agency and the Attorney General for the state where the property is located.



RULE 6072-1. TURNOVER PROCEEDINGS - MOTION


If upon demand an entity has refused to deliver to the trustee tangible property of a kind specified in §542(a) of the Code, the value of the property is less than $10,000 and the property is located within the District of Minnesota, the trustee may seek an order for turnover by way of motion. At any time, on motion and for cause, the court may convert the proceeding to an adversary proceeding.