Hamilton V Lanning Decision

The  SUPREME COURT OF THE UNITED STATES recently ruled 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.  The debtor’s had an unusual item of income, a severance payout from a long term job, that caused their projected disposable income to be higher than taking into account the debtor’s current income without the severance.  The Court decided that it was unlikely that the debtors would receive another severance payment during the course of the Chapter 13 plan and that their disposable monthly income should be calculated without using the severance pay.  The Decision can be read by clicking the link HAMILTON, CHAPTER 13 TRUSTEE v. LANNING.