Chapter 27 - § 27.3 • ABANDONMENT

• Jurisdiction: Colorado

§ 27.3 • ABANDONMENT

After notice and hearing, the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.⁷³ Abandonment must be done in compliance with § 554 and Rule 6007(a).⁷⁴ On request of a party in interest and after notice and a hearing, the court may order the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate.⁷⁵ An abandonment must be clear and unmistakable.⁷⁶ Title to abandoned property remains as it was at the date of the petition.⁷⁷ Unless the court orders otherwise, any property included in the debtor's schedule of assets⁷⁸ not otherwise administered at the time of the closing of the case is abandoned to the debtor.⁷⁹ Unless the court orders otherwise, property of the estate that is not abandoned and that is not administered in the case remains property of the estate.⁸⁰

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Notes:

^[73] 11 U.S.C. § 554(a).

^[74] In re Cheatle, 150 B.R. 266 (Bankr. D. Colo. 1993) (attempted abandonment ineffective).

^[75] 11 U.S.C. § 554(b). See In re Murphy, 22 B.R. 663 (Bankr. D. Colo. 1982); In re Glass, 138 B.R. 272 (Bankr. D. Colo. 1992).

^[76] In re Williams, 70 B.R. 441 (Bankr. D. Colo. 1987).

^[77] In re Murphy, 22 B.R. 663 (Bankr. D. Colo. 1982) (property abandoned to debtor); Garcia v. Adjustment Bureau, Inc., 365 P.2d 687 (Colo. 1961).

^[78] See 11 U.S.C. § 521(a)(1).

^[79] 11 U.S.C. § 554(c). See Omni Dev. Corp. v. Atlas Assurance Co. of Am., 956 P.2d 665 (Colo. App. 1998).

^[80] 11 U.S.C. § 554(d).