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2026-07-06 09:52:37 -04:00

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LegalText 11 U.S.C. § 554 Abandonment of property of the estate us united_states_code code_section 11 BANKRUPTCY 5 CREDITORS, THE DEBTOR, AND THE ESTATE 554 11 U.S.C. § 554 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip /us/usc/t11/s554 data/legal/raw/us/code/title-11/usc11.xml 4ed6d2720dec33b66521aa336f83f2ac352ee998521beb7d978eabd7061c7603 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 d20357723d64b5dc7142252e23382b7db9d35e39ad9ce0367396a2ab426133b4 2026-07-04 official
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11 U.S.C. § 554 - Abandonment of property of the estate

Text

(a) 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.

(b) 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.

(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.

(d) 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.

(Pub. L. 95598, Nov. 6, 1978, 92 Stat. 2603; Pub. L. 98353, title III, § 468, July 10, 1984, 98 Stat. 380; Pub. L. 99554, title II, § 283(p), Oct. 27, 1986, 100 Stat. 3118; Pub. L. 111327, § 2(a)(23), Dec. 22, 2010, 124 Stat. 3560.)

Notes

Historical and Revision Notes

legislative statementsSection 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. 95989Under 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

Amendments2010—Subsec. (c). Pub. L. 111327 substituted “521(a)(1)” for “521(1)”. 1986—Subsec. (c). Pub. L. 99554 substituted “521(1)” for “521(a)(1)”. 1984—Subsecs. (a), (b). Pub. L. 98353, § 468(a), inserted “and benefit” after “value”. Subsec. (c). Pub. L. 98353, § 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. 98353, § 468(c), struck out “section (a) or (b) of” after “not abandoned under”.

Statutory Notes and Related Subsidiaries

Effective Date of 1986 AmendmentAmendment by Pub. L. 99554 effective 30 days after Oct. 27, 1986, see section 302(a) of Pub. L. 99554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.

Effective Date of 1984 AmendmentAmendment by Pub. L. 98353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98353, set out as a note under section 101 of this title.