Lasher Holzapfel Sperry & Ebberson, Pllc

By Author: Charles Drouin
Total Articles: 4
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A recent Supreme Court ruling may provide for increased flexibility for Seattle bankruptcy debtors that are coping with unusual income activity. For individuals working with a Seattle bankruptcy attorney, or other professional, this breaking news may provide additional relief for those in situations where regular income was supplemented for a short time through miscellaneous project work, or other means, but not to the extent as to be counted as a stable and permanent source of regular income. It is highly recommended that individuals considering bankruptcy consult with an experienced Seattle bankruptcy attorney before making such a large financial decision.

The recent ruling on Hamilton v. Lanning (June 7, 2010, 130 S. Ct. 2464, 2010 WL 2243704) resulted in approval for the usage of a mechanical approach to income determination, rather than a “forward-thinking” method that would have included the non-typical income dollars for calculation of monthly debt commitments. This alternate method of evaluating an individual’s project disposable income will provide welcome relief to many debtors dealing with similar circumstances ...
... as well as aid the experienced Seattle bankruptcy lawyer in ensuring fair representation for many clients undergoing Seattle bankruptcy proceedings.

Chapter 13 bankruptcy involves repayment of debts through a repayment plan covering monthly payments over a 3-5 year period. If a Chapter 13 bankruptcy trustee or an unsecured creditor objects to plan confirmation, the plan must either pay unsecured claims in full or commit all of the debtor’s projected disposable income to the plan. If a Chapter 13 debtor’s income in the previous six months before bankruptcy exceeds the state median income level, then he or she must apply the Bankruptcy Code – determined, instead of actual, expense categories and amounts in determining projected disposable income.

Often, it is in a person’s best interest to secure legal representation and this is especially true when one is considering Seattle bankruptcy. A seasoned Seattle bankruptcy attorney can help their clients navigate the many intricacies of the Chapter 13 bankruptcy as well as help them understand how such a precedent case may affect their individual situation. Many people gain increased peace of mind through the guidance of a respected and skilled Seattle bankruptcy lawyer that provides advice and helps make sense of the complex scenarios involved in personal or business finances. The professionals at the Lasher firm, headquartered in Seattle, Washington are the best Seattle bankruptcy attorneys to assist with a Seattle bankruptcy. This firm is fully staffed with a great number of well-respected and experienced Seattle bankruptcy attorneys.

The debtor in the Lanning case had an unusual income spike during the six months before bankruptcy due to a one-time buyout from her former employer. Because her income was above median level, she was required to apply expense amounts and categories as directed by the Bankruptcy Code. This caused her “projected disposable income” to increase substantially. The debtor argued that she could not afford to pay the increased commitment per month based on her actual disposable income. Fortunately the Supreme Court upheld the lower court decisions, ruling in the debtor’s favor. It found that the bankruptcy court can take into account changes in the debtor’s disposable income that are known or virtually certain as of plan confirmation. The Court’s ruling seems to suggest that the “mechanical” approach to determining projected disposable income is only a starting point. It also appears to suggest that bankruptcy courts have flexibility in evaluating the debtor’s disposable income calculation by taking into account unusual changes in income and expenses between the six-month period before bankruptcy and the plan confirmation. This realistic approach to plan confirmation is good news for Chapter 13 debtors who are planning a Seattle bankruptcy.

The Lasher firm is well equipped to help individuals through a troubled financial situation. This Seattle bankruptcy attorney group specializes in providing exceptional legal assistance for the complex processes involved in most bankruptcy proceedings as well as many other legal needs.

About Author:-
Charles Drouin is interested in seattle family law. Still an undergrad in university, he hopes to be a seattle bankruptcy attorney one day, and keeps up to date on the latest developments by reading www.lasher.com/news on a regular basis.