Rule 6004-5 Sales of Property Free and Clear of Liens - Section 363(f).
(a) Notice. All free and clear sales are subject to the applicable notice requirements of L.B.R. 6004-1(b), (c) and (d).
(b) Motion. A sale of property free and clear of liens must be commenced by motion except as provided in subdivision (c) below. A motion for a free and clear sale must name as respondents all parties claiming an interest in the property.
(c) Complaint. A sale of property free and clear of liens must be brought as an adversary proceeding and commenced by a complaint under Part VII of the F.R.B.P. and Part VII of the L.B.R. when the seller also seeks:
(1) to determine the validity, priority, or extent of a lien or other interest in property, other than the avoidance of a lien or other transfer of property exempt under 11 U.S.C. § 522(f); or
(2) to obtain approval under 11 U.S.C. § 363(h) for the sale of both the interest of the estate and of a co-owner in the property unless the concurrence of the co-owner has been obtained.
(d) Order. When a motion is filed for a sale free and clear of liens, the clerk will issue an order fixing a response date and a hearing date. A hearing will be held only if a responsive pleading is timely filed, unless a hearing is requested by the moving party or is ordered by the court. Otherwise, an order granting the relief requested will be entered without a hearing.
(e) Service of Motion. The seller must serve a copy of the motion and the order referred to in subparagraph (d) upon all lienholders and other parties claiming an interest in the property and their counsel of record.
(f) Service of Notice. Unless the court directs otherwise, the seller must se rve the notice on the respondent and any parties referenced in L.B.R. 6004-1(c), at least twenty-one (21) days before the hearing on the sale.