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Bankruptcy court order rejecting bankruptcy trustee's objection to Chapter 13 petitioner's deduction of monthly mortgage payments from his disposable income is reversed where the deduction of mortgage expenses from the Chapter 13 debtor's disposable income is not intended to enrich the debtor at the expense of his unsecured creditors but is intended to adjust the respective rights of the mortgagee and the unsecured creditors, and petitioner cannot use a phantom deduction to reduce the recovery by his unsecured creditors without benefiting any other creditor.
Appeal from the United States Bankruptcy Court for the Southern District of Indiana, Indianapolis Division.
Argued May 12, 2009
Decided July 20, 2009
Before POSNER and SYKES, Circuit Judges, and VAN BOKKELEN, District Judge.
Opinion by POSNER, Circuit Judge.
VAN BOKKELEN, District Judge, concurring in part and concurring in the judgment.
SYKES, Circuit Judge, dissenting.