The relinquishment by the bankruptcy estate of any claim to an asset, thus relegating the asset once again to the realm of nonbankruptcy law and venues. The sometimes used phrase “abandoned to the secured creditor” is a misnomer. The asset is actually abandoned to the debtor subject to the claims of creditors. Generally, property that is abandoned is abandoned because it is burdensome to the bankruptcy estate or of inconsequential value.
Bankruptcy Code § 554.