Abandonment

Governed by Bankruptcy Code § 554 in the context of a bankruptcy case, abandonment is the act of the Trustee (or Debtor-in-Possession), upon order of the Bankruptcy Court, relinquishing all rights and obligations of the Estate in specific property of the Estate. Such an order results from a request by the Trustee or by another party in interest and after notice and a hearing of such a request. The Bankruptcy Court will approve or order abandonment if the property at issue is “burdensome to the estate or that is of inconsequential value and benefit to the estate.”

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