(Bankr. E.D. Ky. Jan. 6, 2017)
The bankruptcy court sustains the creditor’s objection to confirmation of the Chapter 13 plan. The debtor filed her bankruptcy petition after the creditor obtained a judgment and order of sale with respect to the debtor’s residence, after the creditor was the successful bidder at the resulting foreclosure sale, but before the state court confirmed the foreclosure sale. The creditor argued the debtor was not permitted to cure the default through her plan. The court discusses 11 U.S.C. § 1322(c) and holds that the debtor may not cure the default through a plan after the “gavel comes down on the last bid.” Confirmation of the sale and the right of redemption do not affect the analysis. Opinion below.
Attorney for Debtor: DelCotto Law Group PLLC, Dean A. Langdon
Attorneys for Creditor: Goldberg Simpson, LLC, Stephen R. Solomon, Megan P. Keane