Section 1322(c)(1) of the Bankruptcy Code1 allows debtors to cure defaults and reinstate a 
mortgage on their principal residence "until such residence is sold at a foreclosure sale that is 
conducted in accordance with applicable nonbankruptcy law."2
 Like many provisions of the 
Bankruptcy Code, this one appears fairly straightforward at first glance; a debtor has the right to 
cure and reinstate a home mortgage until the property is sold at a foreclosure sale. 

Kellner v First Ohio Banc & Lending, Inc. (In re Geraci), 507 B.R. 224 (Bankr. S.D. Ohio 2014) –

“There’s no place like home…”

-Dorothy Gale

In re Arenas, 514 B.R. 887 (Bankr. D. Colo. 2014) –

The U.S. trustee sought to dismiss “for cause” a chapter 7 case filed by a marijuana grower and his wife. The debtors countered by moving to convert to a chapter 13 case. The case turned on the impact of the federal Controlled Substances Act.

In re Trinity Coal Corp., 514 B.R. 526 (Bankr. E.D. Ky. 2014) –

The debtors sought to reject easement and disposal agreements with the owners of adjacent coal mines. The adjacent owners objected on the basis that the agreements were an integral part of a larger transaction, and could not be separately rejected.

As many areas continue to rebound slightly from the real-estate downturn, much litigation still exists related to the exposure of guarantors for corporate-entity real estate loans.   In many instances a corporation or Limited Liability Company (LLC) may have filed for Chapter 11 in an effort to stave off a foreclosure and restructure the secured debt. However, it is well settled that a corporate bankruptcy case does not operate to discharge a guaranty from a guarantor who is not in bankruptcy.

Heatherwood Holdings, LLC v. HGC, Inc. (In re Heatherwood Holdings, LLC), 746 F.3d 1206 (11th Cir. 2014) –

DeGiacomo v. Traverse (In re Traverse), 753 F.3d 19 (1st Cir. 2014) –

In re Denman, 513 B.R. 720 (Bankr. W.D. Tenn. 2014) –

A chapter 13 debtor was a member of a limited liability company. Another member sought relief from the automatic stay in order to exercise a right to acquire the debtor’s membership interests pursuant to the LLC operating agreement.

Ocwen Loan Servicing LLC v. Summit Bank, N.A. (In re Francis), 750 F.3d 754 (8th Cir. 2014) –

A lender that attached the wrong legal description to its recorded mortgage sought equitable subrogation and/or reformation of the mortgage in order to obtain a first priority lien on the intended property.