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ARTICLE · 15 JUNE 2010

Supreme Court Decision Alert - June 7, 2010

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A debtor who files for bankruptcy under Chapter 13 must agree to a court-approved repayment plan for making installment payments to creditors.

United StatesLitigation, Mediation & Arbitration
Andrew Tauber
Andrew Tauber
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Originally published June 7, 2010

Keywords: bankruptcy, disposable income, corporate defendant, limitations period

Today the Supreme Court issued two decisions, described below, of interest to the business community.

  • Bankruptcy—Calculation of Debtor's "Projected Disposable Income"
  • Fed. R. Civ. P. 15—"Mistake" in Naming Proper Corporate Defendant—Limitations Period

Bankruptcy—Calculation of Debtor's "Projected Disposable Income"

Hamilton v. Lanning, No. 08-998 (previously discussed in the November 2, 2009 Docket Report).

A debtor who files for bankruptcy under Chapter 13 must agree to a court-approved repayment plan for making installment payments to creditors. If the bankruptcy trustee objects to the repayment plan, the plan can be confirmed only if it provides that all of the debtor's "projected disposable income" during the applicable period "will be applied to make payments to unsecured creditors under the plan." 11 U.S.C. § 1325(b)(1)(B).

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