Hamilton, as Chapt. 13 Trustee v. Lanning

Opinion on Definition of Projected Disposable Income in a Chapter 13 Case


In an 8-1 opinion in Hamilton v. Lanning, the Supreme Court had a second opportunity to construe the meaning of the 2005 BAPCPA amendments.

At issue in Hamilton was the definition of “projected disposable income,” a key term in chapter 13 of the Bankruptcy Code because a chapter 13 debtor must, if a creditor objects to his repayment plan, commit all of his “projected disposable income” to be received during the duration of his plan to plan payments.

The Supreme Court affirmed the Tenth Circuit’s holding that a court should apply a forward-looking test rather than a mechanical test in determining a debtor’s projected disposable income, holding that “when a bankruptcy court calculates a debtor’s projected disposable income, the court may account for changes in the debtor’s income or expenses that are known or virtually certain at the time of confirmation.”

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Reference Info:Decision | Federal, U.S. Supreme Court | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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