U.S. Supreme Court Decides Hamilton v. Lanning

On June 10, 2010, the U.S. Supreme Court decided the case of Hamilton v. Lanning. The court’s ruling interpreted the Means Test (used in bankruptcy to determine ability to pay) to be a mechanical test relying on a person’s average income for the 6 months prior to filing. The court also held that a bankruptcy judge may consider changes in a person’s income or expenses that are certain or virtually certain to occur in determining ability to pay.