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PART VI--COLLECTION AND LIQUIDATION OF THE ESTATE
Rule 6001. Burden of Proof as to Validity of
Any entity asserting the validity of a transfer under § 549 of the Code
shall have the burden of proof
Rule 6002. Accounting by Prior Custodian of Property of
(a) Accounting required. Any custodian required by the Code to
deliver property in the custodian's possession or control to the trustee shall
promptly file and transmit to the United States trustee a report and account
with respect to the property of the estate and the administration thereof.
(b) Examination of administration. On the filing and transmittal of
the report and account required by subdivision (a) of this rule and after an
examination has been made into the superseded administration, after notice and
a hearing, the court shall determine the propriety of the administration,
including the reasonableness of all disbursements.
Rule 6004. Use, Sale, or Lease of Property
(a) Notice of proposed use, sale, or lease of property. Notice of a
proposed use, sale, or lease of property, other than cash collateral, not in
the ordinary course of business shall be given pursuant to Rule 2002(a)(2),
(c)(1), (i), and (k) and, if applicable, in accordance with § 363(b)(2) of
(b) Objection to proposal. Except as provided in subdivisions (c) and
(d) of this rule, an objection to a proposed use, sale, or lease of property
shall be filed and served not less than five days before the date set for the
proposed action or within the time fixed by the court. An objection to the
proposed use, sale, or lease of property is governed by Rule 9014.
(c) Sale free and clear of liens and other interests. A motion for
authority to sell property free and clear of liens or other interests shall be
made in accordance with Rule 9014 and shall be served on the parties who have
liens or other interests in the property to be sold. The notice required by
subdivision (a) of this rule shall include the date of the hearing on the
motion and the time within which objections may be filed and served on the
debtor in possession or trustee.
(d) Sale of property under $2,500. Notwithstanding subdivision (a) of
this rule, when all of the nonexempt property of the estate has an aggregate
gross value less than $2,500, it shall be sufficient to give a general notice
of intent to sell such property other than in the ordinary course of business
to all creditors, indenture trustees, committees appointed or elected pursuant
to the Code, the United States trustee and other persons as the court may
direct. An objection to any such sale may be filed and served by a party in
interest within 15 days of the mailing of the notice, or within the time fixed
by the court. An objection is governed by Rule 9014.
(e) Hearing. If a timely objection is made pursuant to subdivision
(b) or (d) of this rule, the date of the hearing thereon may be set in the
notice given pursuant to subdivision (a) of this rule.
(f) Conduct of sale not in the ordinary course of business.
(1) Public or private sale. All sales not in the ordinary course of
business may be by private sale or by public auction. Unless it is
impracticable, an itemized statement of the property sold, the name of each
purchaser, and the price received for each item or lot or for the property
as a whole if sold in bulk shall be filed on completion of a sale. If the
property is sold by an auctioneer, the auctioneer shall file the statement,
transmit a copy thereof to the United States trustee, and furnish a copy to
the trustee, debtor in possession, or chapter 13 debtor. If the property is
not sold by an auctioneer, the trustee, debtor in possession, or chapter 13
debtor shall file the statement and transmit a copy thereof to the United
(2) Execution of instruments. After a sale in accordance with this
rule the debtor, the trustee, or debtor in possession, as the case may be,
shall execute any instrument necessary or ordered by the court to effectuate
the transfer to the purchaser.
(g) Stay of order authorizing use, sale, or lease of property. An
order authorizing the use, sale, or lease of property other than cash
collateral is stayed until the expiration of 10 days after entry of the order,
unless the court orders otherwise.
Rule 6005. Appraisers and Auctioneers
The order of the court approving the employment of an appraiser or
auctioneer shall fix the amount or rate of compensation. No officer or
employee of the Judicial Branch of the United States or the United States
Department of Justice shall be eligible to act as appraiser or auctioneer. No
residence or licensing requirement shall disqualify an appraiser or auctioneer
Rule 6006. Assumption, Rejection and Assignment of
Executory Contracts and Unexpired Leases
(a) Proceeding to assume, reject, or assign. A proceeding to assume,
reject, or assign an executory contract or unexpired lease, other than as part
of a plan, is governed by Rule 9014.
(b) Proceeding to require trustee to act. A proceeding by a party to
an executory contract or unexpired lease in a chapter 9 municipality case,
chapter 11 reorganization case, chapter 12 family farmer's debt adjustment
case, or chapter 13 individual's debt adjustment case, to require the trustee,
debtor in possession, or debtor to determine whether to assume or reject the
contract or lease is governed by Rule 9014.
(c) Notice. Notice of a motion made pursuant to subdivision (a) or
(b) of this rule shall be given to the other party to the contract or lease,
to other parties in interest as the court may direct, and, except in a chapter
9 municipality case, to the United States trustee.
(d) Stay of order authorizing assignment. An order authorizing the
trustee to assign an executory contract or unexpired lease under Sec. 365(f)
is stayed until the expiration of 10 days after the entry of the order, unless
the court orders otherwise.
Rule 6007. Abandonment or Disposition of Property
(a) Notice of proposed abandonment or disposition; objections; hearing.
Unless otherwise directed by the court, the trustee or debtor in possession
shall give notice of a proposed abandonment or disposition of property to the
United States trustee, all creditors, indenture trustees, and committees
elected pursuant to § 705 or appointed pursuant to § 1102 of the Code. A
party in interest may file and serve an objection within 15 days of the
mailing of the notice, or within the time fixed by the court. If a timely
objection is made, the court shall set a hearing on notice to the United
States trustee and to other entities as the court may direct.
(b) Motion by party in interest. A party in interest may file and
serve a motion requiring the trustee or debtor in possession to abandon
property of the estate.
Rule 6008. Redemption of Property from Lien or Sale
On motion by the debtor, trustee, or debtor in possession and after hearing
on notice as the court may direct, the court may authorize the redemption of
property from a lien or from a sale to enforce a lien in accordance with
Rule 6009. Prosecution and Defense of Proceedings by
Trustee or Debtor in Possession
With or without court approval, the trustee or debtor in possession may
prosecute or may enter an appearance and defend any pending action or
proceeding by or against the debtor, or commence and prosecute any action or
proceeding in behalf of the estate before any tribunal.
Rule 6010. Proceeding to Avoid Indemnifying Lien or
Transfer to Surety
If a lien voidable under § 547 of the Code has been dissolved by the
furnishing of a bond or other obligation and the surety thereon has been
indemnified by the transfer of, or the creation of a lien upon, nonexempt
property of the debtor, the surety shall be joined as a defendant in any
proceeding to avoid the indemnifying transfer or lien. Such proceeding is
governed by the rules in Part VII.