October 30, 2009
Solicitor General Supports Cert in In re LanningThe Solicitor General has filed an invitation brief with the Supreme Court in the In re Lanning case. Lanning presents nicely the issue of what means "projected disposable income" in chapter 13? It reaches a contrary conclusion to Kagenveama, that is, Lanning holds that the bankruptcy court can look into the future when deciding whether or not the debtor is paying her projected disposable income into the plan, rather than the mechanical approach of Kagenveama. Lanning is an above median debtor but only because she received a sizable one-time bonus in the previous six months. Using the mechanical approach, she cannot make the required plan payment. The bankruptcy court took a practical approach and confirmed the plan even though the payment was below the mechanical payment approach. Maybe we will get another Supreme Court case this year.
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