Berrouet v. BAC Home Loan Servicing (In Re Berrouet), 469 B.R. 393

Debtor Fred Berrouet filed Chapter 13 on March 15, 2011; plan confirmed June 7, 2011.
Residence is encumbered by first and second priority security deeds held by BAC Home Loan Servicing; plan treats both as secured with arrears cured.
Plan directs debtor to make mortgage payments directly while trustee pays the allowed arrearage as indicated.
Debtor discovered the 2011 tax assessment valued the home at $103,600, prompting a motion to reclassify BAC's second mortgage as wholly unsecured.
Debtor requested lien stripping and avoidance of BAC's lien upon discharge under § 506(a), § 1322(b)(2), and Tanner (11th Cir. 2000).
Bank of America opposed the motion; the court ultimately denied the motion as res judicata by the confirmed plan.

Issue	Plaintiff's Argument	Defendant's Argument	Held
May a debtor strip a wholly unsecured second mortgage post-confirmation?	Berrouet relies on 506(a) and Tanner for post-confirmation stripping.	Plan treatment is binding; res judicata prevents reclassification after confirmation.	Denied; plan res judicata prevents lien stripping.
Does confirmation bind creditors to plan treatment, foreclosing post-confirmation modification?	Confirmation does not preclude later reconsideration of claim treatment.	§ 1327 binds the debtor and creditors to the confirmed plan; post-confirmation changes are barred.	Denied; res judicata bars post-confirmation reclassification.

In re Tanner, 217 F.3d 1357 (11th Cir. 2000) (supports lien stripping where lien is wholly unsecured under 506(a))
In re Parmenter, 527 F.3d 606 (6th Cir. 2008) (plan confirmation is final; issues settled by res judicata)
In re Stevens, 130 F.3d 1027 (11th Cir. 1997) (confirmation as final judgment in Chapter 13 context)
In re Cruz, 253 B.R. 638 (Bankr. D.N.J. 2000) (plan’s treatment is binding and final upon confirmation)
Nobelman v. Am. Savings Bank, 508 U.S. 324 (U.S. 1993) (anti-modification provision for principal residence in 1322(b)(2) context)