Hamilton v. Lanning (2009)

Docket
08-998
Decided
2009-01-01

Summary

Question: In calculating a debtor's "projected disposable income," may the bankruptcy court consider evidence suggesting that the debtor's income or expenses during that period are likely to be different from the debtor's income or expenses during the pre-filing period? Conclusion: Yes. The Supreme Court affirmed the Tenth Circuit, holding that a bankruptcy court may account for changes in the debtor's income or expenses that are "known or virtually certain" at the time of confirmation when it calculates a debtor's projected disposable income. With Justice Samuel A. Alito writing for the majority, the Court reasoned that the plain meaning of "projected disposable income" within the statute supports the Court's holding. Justice Antonin Scalia dissented. He disagreed with the majority's interpretation of the term "projected." He maintained that the term did allow for a bankruptcy court to depart from the "inflexible formula" provided by the statute.

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