Title 11 — Bankruptcy
Chapter 5 — Creditors, the Debtor, and the Estate
§ 554. Abandonment of property of the estate
Statutory text
After notice and a 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.
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.
Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.
Unless the court orders otherwise, property of the estate that is not abandoned under this section and that is not administered in the case remains property of the estate.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 554
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2603
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2603Pub. L. 98–353 § 468(a) · 98 Stat. 333
Inserted · 11 U.S.C. § 554(a); 11 U.S.C. § 554(b)
Pub. L. 98–353, § 468(a), inserted “and benefit” after “value”
Source evidence
Code amendment note
Subsecs. (a), (b). Pub. L. 98–353, § 468(a), inserted “and benefit” after “value”.Enacted provision · exact public law section
(a) Subsections (a) and (b) of section 554 of title 11 of the United States Code are each amended by inserting “and benefit” after “value”.Pub. L. 98–353 § 468(b) · 98 Stat. 333
Amended · 11 U.S.C. § 554(c)
Pub. L. 98–353, § 468(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Unless the court orders otherwise, any property that is scheduled under section 521(1) of this title and that is not administered before a case is closed under section 350 of this title is deemed abandoned.”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 468(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Unless the court orders otherwise, any property that is scheduled under section 521(1) of this title and that is not administered before a case is closed under section 350 of this title is deemed abandoned.”Enacted provision · exact public law section
(b) Section 554(c) of title 11 of the United States Code is amended to read as follows: “(c) Unless the court orders otherwise, any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor and administered for purposes of section 350 of this title.”.Pub. L. 98–353 § 468(c) · 98 Stat. 333
Struck · 11 U.S.C. § 554(d)
Pub. L. 98–353, § 468(c), struck out “section (a) or (b) of” after “not abandoned under”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 98–353, § 468(c), struck out “section (a) or (b) of” after “not abandoned under”.Enacted provision · exact public law section
(c) Section 554(d) of title 11 of the United States Code is amended by striking out “section (a) or (b) of”.Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 title II § 283(p) · 100 Stat. 3088
Substituted · 11 U.S.C. § 554(c)
Pub. L. 99–554 substituted “521(1)” for “521(a)(1)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 99–554 substituted “521(1)” for “521(a)(1)”.Enacted provision · exact public law section
(p) Section 554(c) of title 11, United States Code, is amended by striking out “521(a)(1)” and inserting in lieu thereof “521(1)”.Effective date note
Amendment by Pub. L. 99–554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.Bankruptcy Technical Corrections Act of 2010
Pub. L. 111–327 § 2(a)(23) · 124 Stat. 3557
Substituted · 11 U.S.C. § 554(c)
Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”.Enacted provision · exact public law section
(23) in section 554(c) by striking “521(1)” and inserting “521(a)(1)”,
5 of 6 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
Section 554(b) is new and permits a party in interest to request the court to order the trustee to abandon property of the estate that is burdensome to the estate or that is of inconsequential value to the estate.
senate report no. 95–989
Under this section the court may authorize the trustee to abandon any property of the estate that is burdensome to the estate or that is of inconsequential value to the estate. Abandonment may be to any party with a possessory interest in the property abandoned. In order to aid administration of the case, subsection (b) deems the court to have authorized abandonment of any property that is scheduled under section 521(1) and that is not administered before the case is closed. That property is deemed abandoned to the debtor. Subsection (c) specifies that if property is neither abandoned nor administered it remains property of the estate.
Editorial Notes
Amendments1984–2010 · 3 rounds
2010
Subsec. (c). Pub. L. 111–327 substituted “521(a)(1)” for “521(1)”.
1986
Subsec. (c). Pub. L. 99–554 substituted “521(1)” for “521(a)(1)”.
1984
Subsecs. (a), (b). Pub. L. 98–353, § 468(a), inserted “and benefit” after “value”.
Subsec. (c). Pub. L. 98–353, § 468(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Unless the court orders otherwise, any property that is scheduled under section 521(1) of this title and that is not administered before a case is closed under section 350 of this title is deemed abandoned.”
Subsec. (d). Pub. L. 98–353, § 468(c), struck out “section (a) or (b) of” after “not abandoned under”.
Statutory Notes and Related Subsidiaries
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–554 effective 30 days after , see section 302(a) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Credits
1978–2010 · 4 acts
- 1978Pub. L. 95–598, , 92 Stat. 2603
- 1984Pub. L. 98–353, title III, § 468, , 98 Stat. 380
- 1986Pub. L. 99–554, title II, § 283(p), , 100 Stat. 3118
- 2010Pub. L. 111–327, § 2(a)(23), , 124 Stat. 3560.
Show as published
(Pub. L. 95–598, , 92 Stat. 2603; Pub. L. 98–353, title III, § 468, , 98 Stat. 380; Pub. L. 99–554, title II, § 283(p), , 100 Stat. 3118; Pub. L. 111–327, § 2(a)(23), , 124 Stat. 3560.)