Rule 6004-1 : Sale of Estate Property


(a) Sales Free and Clear of Liens: A motion to sell free and clear of liens under 11 U.S.C. § 363(f) must identify by name the lienholders whose property rights are affected by the motion. The affected lienholders must be served with a complete set of moving papers pursuant to FED. R. BANKR. P. 7004(b). The motion must allege the factual basis demonstrating that the motion comes within one or more subsections of 11 U.S.C. § 363(f)(1)-(5). If the motion does not so identify the lienholders, it will be considered as an application to sell property subject to existing liens.

(b) Bidding Procedures: A motion to approve procedures for bidding for an asset or assets may be filed separately in advance of filing a sale motion or combined with the sale motion, and in appropriate circumstances, on more limited and shortened notice than the sale motion.

(c) Form of Order: The proposed form of order granting a motion to sell free and clear of liens must specify each lienholder whose interest is to be affected by the order and whether such liens will attach to the proceeds of the sale.

Commentary

[Source: L.B.R. 604 and N.D. Cal.]

See L.B.R. 2002-1, 2081-1, 9013-1 and FED. R. BANKR. P. 6003 and 9006.


Comments