RULE 6004-1 SALE OF PROPERTY NOT IN THE ORDINARY COURSE OF BUSINESS
(a) Motion/Notice of Proposed Sale of Property (Subject to Liens or Free and Clear of Liens). The proponent of the sale shall give notice in accordance with Fed. R. Bankr. P. 2002(a)(2) and 6004(c), when proposing to sell property other than in the ordinary course of business, and shall file with the Clerk a certificate of service.
(b) Scope and Content of Notice. The motion/notice shall include a summary of the terms and conditions of the proposed sale, a statement of the aggregate amount of liens or encumbrances known to movant, and a statement that the proposed sale price is at least equal to or more than the value of the property. The notice may provide that, absent timely objection, the proposed sale be considered without a formal hearing.
(c) Notice of Sale in Chapter 11 Cases. In chapter 11 cases in which all or substantially all of the assets of the debtor are being sold, except sales under a confirmed chapter 11 reorganization plan, an advertisement of said sale shall be placed in a local newspaper of general circulation. Upon application to the Court, this requirement of advertising may be waived in appropriate circumstances.
(d) Sale of Estate Property in Chapter 13 Cases.
(1) Any sale of the property of the estate outside the ordinary course of business in Chapter 13, including but not limited to, the Debtor's principal residence, real property, or other property being sold for $2,000 or more must be approved by the Court after notice and a hearing. A motion for such approval shall be made in accordance with 11 U.S.C. § 363, Fed. R. Bankr. P. 4001 or 6004, and subsections (a) and (b) of this rule, as applicable. The motion to sell shall include a proposed distribution of the proceeds of the sale. All motions to sell shall be served on the Chapter 13 trustee, all creditors, all parties who have filed appearances and any other entity as the Court may direct.
(2) If an appraiser or real estate broker is involved in the sale, the Debtor must obtain court authority to employ the appraiser or broker by way of application. The application must be accompanied by an affidavit of disinterestedness signed by the broker, and shall also comply with the requirements of R.I. LBR 2014-1 and 6005-1.
©1998 US Bankruptcy
Court
District of Rhode Island