MOTION TO SELL PROPERTY

Pursuant to 11 U.S.C. Section 363

UNITED STATES BANKRUPTCY COURT

[DISTRICT NAME]

In re:

[DEBTOR NAME(S)],

Debtor(s).

Case No.: _________________
Chapter: ☐ 7 ☐ 13

DEBTOR'S MOTION TO SELL PROPERTY

Pursuant to 11 U.S.C. Section 363(b)

[DEBTOR NAME(S)] ("Debtor(s)"), by and through undersigned counsel, respectfully move(s) this Court for authorization to sell certain property of the estate, and in support thereof state(s) as follows:

I. JURISDICTION AND VENUE

1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. Sections 157 and 1334.

2. This is a core proceeding under 28 U.S.C. Section 157(b)(2)(A), (N), and (O).

3. Venue is proper in this District pursuant to 28 U.S.C. Section 1409.

II. BACKGROUND

4. On [FILING DATE], the Debtor(s) filed a voluntary petition for relief under Chapter [7/13] of the Bankruptcy Code.

5. [For Chapter 13:] On [CONFIRMATION DATE], this Court confirmed the Debtor(s)' Chapter 13 Plan.

6. [For Chapter 7:] [TRUSTEE NAME] is the duly appointed Chapter 7 Trustee.

III. PROPERTY TO BE SOLD

A. Property Description

7. The Debtor(s) seek authorization to sell the following property:

☐ REAL PROPERTY:

☐ PERSONAL PROPERTY (Vehicle):

☐ OTHER PERSONAL PROPERTY:

B. Scheduled Value and Exemption

8. The property was scheduled on:
   - Schedule A/B, Item #___
   - Scheduled Value: $[AMOUNT]

9. Exemption claimed on Schedule C: $[AMOUNT] under [CITE EXEMPTION]

IV. SALE TERMS

A. Proposed Buyer

10. The proposed buyer is:

B. Sale Price and Terms

C. Marketing Efforts (if applicable)

11. The property was marketed as follows:

☐ Listed with real estate agent/broker
- Agent Name: _________________________________
- Listing Period: _________________________________
- List Price: $_____________
- Commission: _____%

☐ Advertised privately
☐ Multiple offers received: _____ offers
☐ Other marketing: _________________________________

D. Fair Market Value

12. The sale price represents fair market value based on:

☐ Comparative market analysis (Exhibit ___)
☐ Appraisal (Exhibit ___)
☐ KBB/NADA valuation for vehicles (Exhibit ___)
☐ Multiple offers/market exposure
☐ Other: _________________________________

V. LIENS AND ENCUMBRANCES

A. Existing Liens

13. The following liens encumber the property:

B. Sale Free and Clear

14. The Debtor(s) request authorization to sell:

☐ Subject to existing liens (buyer assumes or pays liens at closing)

☐ Free and clear of liens pursuant to 11 U.S.C. Section 363(f) because:

☐ (1) Applicable nonbankruptcy law permits sale free and clear
☐ (2) Lienholder(s) consent
☐ (3) Sale price exceeds aggregate value of all liens
☐ (4) Lien is in bona fide dispute
☐ (5) Lienholder could be compelled to accept money satisfaction

VI. DISTRIBUTION OF PROCEEDS

A. Proposed Distribution

15. The sale proceeds shall be distributed as follows:

B. Proceeds Handling

☐ Chapter 7: Remaining proceeds (after exemption) paid to Trustee for distribution

☐ Chapter 13: Remaining proceeds shall be:
☐ Paid into the Chapter 13 Plan
☐ Used to purchase replacement property (see attached)
☐ Retained by Debtor as exempt
☐ Other: _________________________________

VII. REASON FOR SALE

16. The Debtor(s) seek to sell the property because:

☐ Cannot afford ongoing payments/maintenance
☐ Relocating for employment
☐ Property no longer needed
☐ To fund Chapter 13 Plan payments
☐ To pay priority creditors
☐ Estate administration (Chapter 7)
☐ Property underwater/negative equity
☐ Divorce/separation
☐ Other: _________________________________

VIII. BUSINESS JUSTIFICATION

17. The sale is in the best interest of the estate and creditors because:

☐ Sale price represents fair market value
☐ Property is declining in value
☐ Carrying costs exceed benefit of retention
☐ Sale will provide funds for plan payments
☐ No objection from secured creditors
☐ Other: _________________________________

IX. NOTICE

18. Notice of this Motion has been or will be provided to:

☐ Chapter 7/13 Trustee
☐ U.S. Trustee
☐ All secured creditors with liens on the property
☐ All parties who have filed a notice of appearance
☐ All creditors (for significant sales)
☐ Any co-owner of the property

X. LEGAL STANDARD

A. Section 363(b)

19. Section 363(b)(1) provides: "The trustee, after notice and a hearing, may use, sell, or lease, other than in the ordinary course of business, property of the estate..."

B. Section 363(f) - Sale Free and Clear

20. Section 363(f) permits a sale free and clear of any interest in such property if:
    - Applicable nonbankruptcy law permits sale free and clear;
    - Such entity consents;
    - Such interest is a lien and the price is greater than the aggregate value of all liens;
    - Such interest is in bona fide dispute; or
    - Such entity could be compelled to accept a money satisfaction.

C. Business Judgment Standard

21. Courts apply the business judgment standard: whether there is a legitimate business justification for the proposed sale.

XI. RELIEF REQUESTED

WHEREFORE, the Debtor(s) respectfully request that this Court:

1. Authorize the sale of the property described herein to [BUYER] for $[PRICE];

2. Authorize the sale free and clear of all liens, with liens to attach to the proceeds;

3. Approve the distribution of proceeds as set forth herein;

4. Authorize the Debtor(s) to execute all documents necessary to consummate the sale;

5. Waive the 14-day stay under Fed. R. Bankr. P. 6004(h) [if requested];

6. Grant such other and further relief as the Court deems just and proper.

Dated: ____/____/________

Respectfully submitted,

_________________________________
[ATTORNEY NAME]
[STATE BAR NUMBER]
[FIRM NAME]
[ADDRESS]
[TELEPHONE]
[EMAIL]
Attorney for Debtor(s)

EXHIBITS

☐ Exhibit A: Legal description of property
☐ Exhibit B: Purchase agreement/contract
☐ Exhibit C: Appraisal or comparative market analysis
☐ Exhibit D: Payoff statements from lienholders
☐ Exhibit E: Preliminary title report
☐ Exhibit F: Schedule A/B and C (relevant pages)
☐ Exhibit G: Broker listing agreement (if applicable)
☐ Exhibit H: Buyer's pre-approval/proof of funds

PROPOSED ORDER

[COURT HEADER]

ORDER AUTHORIZING SALE OF PROPERTY

Upon consideration of the Debtor(s)' Motion to Sell Property Pursuant to 11 U.S.C. Section 363, and after notice and hearing, and good cause appearing;

IT IS HEREBY ORDERED:

1. The Motion is GRANTED.

2. The Debtor(s) are authorized to sell the property located at/described as [DESCRIPTION] to [BUYER] for $[PRICE].

3. The sale is authorized free and clear of all liens, claims, encumbrances, and interests, with such interests to attach to the proceeds of sale in the same order of priority.

4. The proceeds shall be distributed as follows:
   a. Payment of ordinary closing costs
   b. Payment of real estate commission to [BROKER] in the amount of $[AMOUNT]
   c. Payment to [1ST LIENHOLDER] in the amount of $[AMOUNT]
   d. Payment to [2ND LIENHOLDER] in the amount of $[AMOUNT]
   e. [Remaining distribution as specified]

5. The Debtor(s) are authorized to execute all documents necessary to consummate the sale.

6. The 14-day stay under Fed. R. Bankr. P. 6004(h) is [waived/not waived].

Dated: ____/____/________

_________________________________
United States Bankruptcy Judge

CERTIFICATE OF SERVICE

I certify that on [DATE], I served the foregoing Motion on:

☐ Chapter 7/13 Trustee
☐ Office of the U.S. Trustee
☐ All secured creditors holding liens on the property
☐ All creditors via matrix (if required)

_________________________________
[ATTORNEY NAME]

Template Version 1.0 - Updated January 2026
References: 11 U.S.C. Section 363; Fed. R. Bankr. P. 2002, 6004