U.S. Code » Title 11 » Chapter CHAPTER 12— ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › Subchapter SUBCHAPTER I— OFFICERS, ADMINISTRATION, AND THE ESTATE

11 U.S.C. § 1206

Sales free of interests

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After notice and a hearing, in addition to the authorization contained in section 363(f), the trustee in a case under this chapter may sell property under section 363(b) and (c) free and clear of any interest in such property of an entity other than the estate if the property is farmland, farm equipment, or property used to carry out a commercial fishing operation (including a commercial fishing vessel), except that the proceeds of such sale shall be subject to such interest.

Notes of Decisions
Cited in 15 cases (2 in the last 5 years), 1987–2025 · leading case: Clear Channel Outdoor, Inc. v. Knupfer (In Re PW, LLC), 391 B.R. 25 (9th Cir. BAP 2008).
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Clear Channel Outdoor, Inc. v. Knupfer (In Re PW, LLC), 391 B.R. 25 (9th Cir. BAP 2008). · cites it 2× “11 U.S.C.A § 1206 (West 2004) (emphasis added).”
In Re Knudsen, 389 B.R. 643 (N.D. Iowa 2008). “Amicus points out that, when Congress wants to identify a debtor’s rights and powers in reference to a limited set of assets, such as capital assets, it says so, citing 11 U.S.C. § 1206 as an example. Amicus also points out that “farming operations” are defined in 11 U.”
In Re Neff, 89 B.R. 672 (Bankr. S.D. Ohio 1988). “See 11 U.S.C. § 1206 . Provisions which must be included in a Chapter 12 plan are set forth in 11 U.”
Cornelius v. Kingfisher Bank & Trust Co. (In Re Lindsey), 142 B.R. 447 (Bankr. W.D. Okla. 1992). · cites it 2× “He then collected the properties specified in the plan provision, sold them under 11 U.S.C. § 1206 free and clear of all liens, and instituted this action.”
In Re Durr, 78 B.R. 221 (Bankr. D.S.D. 1987). “It should be pointed out that Congress specifically created a method by which debtors could rid themselves of unnecessary real estate or other property in their Chapter 12 reorganization by the inclusion of 11 U.S.C. § 1206 . See H.R.Rep. No. 958, 99th Cong.”
In Re Wilson, 378 B.R. 862 (Bankr. D. Mont. 2007). “Harper Trust contends that 11 U.S.C. § 1206 specifically provides that the proceeds of any sale free and clear of interests under that section “shall be subject to such interest.”
In Re Hiddleston, 162 B.R. 13 (Bankr. D. Kan. 1993). “(Order Approving Sale of Real Estate Pursuant to 11 U.S.C. § 1206 and 11 U.S.C. § 363 (b) filed June 21, 1991, at 1-2.”
In Re Kocher, 78 B.R. 844 (Bankr. S.D. Ohio 1987). “§ 554 ), or sold (pursuant to 11 U.S.C. § 1206 ) to FLB, in order to clear liens.”
Abele v. Webb (In re Webb), 932 F.2d 155 (2d Cir. 1991). “Finally, appellants argue that because the Webbs, rather than the trustee, sold the easement in this case, the modification was not authorized by 11 U.S.C. § 1206 , which only mentions land sales by trustees.”
Lorenzo P Quesnel, Jr. & Amy Quesnel (Bankr. D. Vt. 2025). · cites it 6× “5 See Order Approving Sale of Property Pursuant to 11 U.S.C. § 1206 and VT. LBR. 6004-1, ECF 210.”
Kenneth H. Roberson, Jr. & Vickie H. Roberson (Bankr. E.D.N.C. 2020). · cites it 5× “In the alternative, in open court the Debtors added 11 U.S.C. § 1206 as a statutory sale vehicle.”
Blissful Dairy, LLC (Bankr. D. Vt. 2025). · cites it 4× “8 Motion to Sell Pursuant to 11 U.S.C. § 1206 Vt. LBR 6004-1, ECF 145.”
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