October Term 2009 · Docket 08-998
Can bankruptcy courts adjust a debtor's income based on future changes?
The dispute centers on whether bankruptcy courts can modify a debtor's income calculation to reflect expected future changes.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
The trustee argued the lower court ignored the new means test.
The debtor argued the statutory scheme allows for case-specific adjustments.
Justices questioned the practical consequences of the debtor's interpretation.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 39-49 — Transcript, file page 10, lines 39-49
- Official Supreme Court Transcript — file page 10, lines 7-29 — Transcript, file page 10, lines 7-29
- Official Supreme Court Transcript — file page 11, lines 23-45 — Transcript, file page 11, lines 23-45
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 7-15 — Transcript, file page 4, lines 7-15
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
- Official Supreme Court Transcript — file page 5, lines 35-43 — Transcript, file page 5, lines 35-43
- Official Supreme Court Transcript — file page 5, lines 5-15 — Transcript, file page 5, lines 5-15
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 47-13 — Transcript, file page 6, lines 47-13
- Official Supreme Court Transcript — file page 7, lines 45-15 — Transcript, file page 7, lines 45-15
- Official Supreme Court Transcript — file page 8, lines 41-45 — Transcript, file page 8, lines 41-45
- Official Supreme Court Transcript — file page 9, lines 27-29 — Transcript, file page 9, lines 27-29
- Official Supreme Court Transcript — file page 9, lines 5-21 — Transcript, file page 9, lines 5-21
A citizen's guide to the whole case
What this case is about
This case involves a conflict over how to calculate a debtor's income for repayment plans. One side argues for a strict formula. The other side argues for flexibility based on future income changes.
Official sources for this section
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
How the case got here
The Supreme Court heard oral argument in this case on March 22, 2010.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
What each side wants
The trustee wants the court to apply the strict statutory formula for income.
The debtor wants the court to allow adjustments for expected future income changes.
Official sources for this section
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
What each side says
The trustee argues the 2005 amendments require a fixed income calculation.
The debtor argues the statute allows courts to consider projected income changes.
Official sources for this section
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
What the justices asked
Justice Ginsburg asked what happens if a debtor's income is too high to pay creditors.
Justice Alito asked how to handle situations where a debtor's income is expected to increase.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 39-49 — Transcript, file page 10, lines 39-49
- Official Supreme Court Transcript — file page 10, lines 7-29 — Transcript, file page 10, lines 7-29
- Official Supreme Court Transcript — file page 11, lines 23-45 — Transcript, file page 11, lines 23-45
- Official Supreme Court Transcript — file page 4, lines 7-15 — Transcript, file page 4, lines 7-15
- Official Supreme Court Transcript — file page 5, lines 35-43 — Transcript, file page 5, lines 35-43
- Official Supreme Court Transcript — file page 5, lines 5-15 — Transcript, file page 5, lines 5-15
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 47-13 — Transcript, file page 6, lines 47-13
- Official Supreme Court Transcript — file page 7, lines 45-15 — Transcript, file page 7, lines 45-15
- Official Supreme Court Transcript — file page 8, lines 41-45 — Transcript, file page 8, lines 41-45
- Official Supreme Court Transcript — file page 9, lines 27-29 — Transcript, file page 9, lines 27-29
- Official Supreme Court Transcript — file page 9, lines 5-21 — Transcript, file page 9, lines 5-21
Why it matters
This case determines how bankruptcy courts calculate a debtor's ability to pay. It affects the balance between strict rules and individual circumstances. Creditors and debtors both face different repayment obligations based on this calculation.
Official sources for this section
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 39-49 — Transcript, file page 10, lines 39-49
- Official Supreme Court Transcript — file page 10, lines 7-29 — Transcript, file page 10, lines 7-29
- Official Supreme Court Transcript — file page 11, lines 23-45 — Transcript, file page 11, lines 23-45
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 7-15 — Transcript, file page 4, lines 7-15
- Official Supreme Court Transcript — file page 5, lines 35-43 — Transcript, file page 5, lines 35-43
- Official Supreme Court Transcript — file page 5, lines 5-15 — Transcript, file page 5, lines 5-15
- Official Supreme Court Transcript — file page 6, lines 27-37 — Transcript, file page 6, lines 27-37
- Official Supreme Court Transcript — file page 6, lines 47-13 — Transcript, file page 6, lines 47-13
- Official Supreme Court Transcript — file page 7, lines 45-15 — Transcript, file page 7, lines 45-15
- Official Supreme Court Transcript — file page 8, lines 41-45 — Transcript, file page 8, lines 41-45
- Official Supreme Court Transcript — file page 9, lines 27-29 — Transcript, file page 9, lines 27-29
- Official Supreme Court Transcript — file page 9, lines 5-21 — Transcript, file page 9, lines 5-21
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
- Official Supreme Court Transcript — file page 28, lines 3-7 — Transcript, file page 28, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-5 — Transcript, file page 3, lines 19-5
- Official Supreme Court Transcript — file page 40, lines 29-3 — Transcript, file page 40, lines 29-3
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.