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[PUBLISH] In the United States Court of Appeals For the Eleventh Circuit ____________________ No. 21-10987 ____________________ In Re: JUDITH LACY BOZEMAN, Debtor. ___________________________________________________ MORTGAGE CORPORATION OF THE SOUTH, Plaintiff-Appellant, versus JUDITH LACY BOZEMAN,

Defendant-Appellee,

SABRINA L. MCKINNEY, Interested Party-Appellee.

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ROSENBAUM, Circuit Judge: Section 1322(b)(2) of Title 11 is known as the Bankruptcy Code’s “antimodification” provision. Tanner v. FirstPlus Fin., Inc., (In re Tanner), 217 F.3d 1357, 1359 (11th Cir. 2000). Under it, with- out the lender’s express approval or an applicable statutory excep- tion, bankruptcy plans cannot modify the rights of home-mortgage lenders as they relate to mortgages on a debtor’s principal resi- dence secured by that residence.

Despite the antimodification provision, Debtor-Appellee Ju- dith Lacy Bozeman’s confirmed bankruptcy plan purported to modify the rights of Plaintiff-Appellant Creditor Mortgage Corpo- ration of the South’s (“MCS”) mortgage on Bozeman’s resi- dence. In fact, her plan purported to eradicate all remaining

* The Honorable James S. Moody, Jr., United States District Judge for the Mid- dle District of Florida, sitting by designation.

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21-10987 Opinion of the Court 3 outstanding payments on her mortgage, beyond MCS’s claims for past-due arrearages. Then, after Bozeman paid off the debts iden- tified under her bankruptcy plan, Bozeman sought to have MCS’s lien on her home (which had guaranteed her payments on the out- standing loan balance) dissolved. Noting that the bankruptcy court had confirmed Bozeman’s Plan without objection and that 11 U.S.C. § 1327 (the “finality” provision) renders confirmed plans fi- nal, the bankruptcy court granted Bozeman’s motion, and the dis- trict court affirmed.

This case requires us to determine which provision wins— antimodification or finality—when the two clash in the scenario this case presents. We declare the antimodification provision the victor.

Under Supreme Court and Eleventh Circuit precedent, we read the antimodification provision as an ironclad “do not touch” instruction for the rights of holders of homestead mortgages. So a bankruptcy plan cannot modify the rights of a mortgage lender whose claim is secured by the debtor’s principal residence by providing for release 1 of the homestead-mortgagee’s lien before the mortgagee has recovered the full amount it is owed. For this reason, we reverse the bankruptcy court’s order discharging MCS’s lien on Bozeman’s home and the district court’s order affirming it.

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In 2015, Judith Bozeman mortgaged her home to MCS for a $14,000 loan. In exchange for the mortgage loan, Bozeman agreed to pay MCS back, plus 19.7% annual interest, over nine years. And as collateral, Bozeman agreed to give MCS a security interest in her home. That allowed MCS to foreclose on Bozeman’s home and recoup the balance of Bozeman’s debt to MCS if Bozeman failed to pay back the money she borrowed.

Unfortunately, in 2016, Bozeman’s financial situation took a turn for the worse. On September 7, she filed for Chapter 13 bank- ruptcy—a legal action that allows an income-earning debtor to hold onto her property while she pays her creditors back over a three-to-five-year period. Harris v. Viegelahn, 575 U.S. 510, 514 (2015) (citing 11 U.S.C. §§ 1306(b), 1322, 1327(b)).

A week after Bozeman filed for bankruptcy, on September 16, MCS filed a proof of claim.2 See 11 U.S.C. § 501. In that proof of claim, MCS asserted Bozeman owed $6,817.42 in arrears on the 2015 mortgage loan. 3 The proof of claim listed the value of MCS’s claim several times, each time with “Arrearage only” handwritten beside it. In other words, the proof of claim did not include the A proof of claim is a legal form a creditor fills out to make a claim for pay- ment out of bankruptcy funds in a bankruptcy case. See Bankruptcy Form 410.

21-10987 Opinion of the Court 5 amount outstanding on Bozeman’s loan after payment of the ar- rearages.

A few days after MCS filed its claim, Bozeman filed a pro- posed payment plan. And two months later, Bozeman filed an amended plan (for convenience, our further reference in this opin- ion to the amended plan uses the term “Plan”).4 In the Plan, Bo- zeman acknowledged a debt to MCS, secured by her home, in the amount of $17,393.04, plus 7.568% in interest. She also listed a se- cured car loan and unspecified unsecured debt, each owed to unre- lated creditors. Bozeman’s Plan proposed 58 monthly payments of $503.00 to the bankruptcy Trustee, $454.00 of which would go to MCS (seemingly adding up to a total of $26,332.00 (58 months x $454.00 per monthly payment) for MCS).

Bozeman’s Plan included a lien-retention provision that guaranteed secured creditors’ retention of their liens until

4 When someone files a Chapter 13 bankruptcy petition, a disinterested trus- tee is appointed to administer the case. 11 U.S.C. § 1302. Among other things, the trustee evaluates the case, collects payments from the debtor, and distrib- utes those payments to the creditors. Id. § 1302(b). On November 17, the trustee here (“Trustee”) filed an objection to confirmation of the initial plan.

Among other reasons, the Trustee objected because the proposed plan did not satisfy the required commitment period (the period for which the plan pro- vides for a debtor to make payments). To justify a shorter commitment pe- riod, the Trustee requested that Bozeman include full payments to all unse- cured creditors through the plan. Id. See 11 U.S.C. § 1325(b)(4). Bozeman then filed her amended Plan, which included 100% payments to her unsecured creditors.

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Rather, she provided for her debt to MCS under the section titled, “secured claims paid through the [P]lan.” This provision

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21-10987 Opinion of the Court 7 advised that creditors’ claims were to be paid under “the terms and conditions listed below as required under § 1325(a)(5).”

The bankruptcy court later described Bozeman’s Plan as a full-payment plan, meaning that (unlike a cure-and-maintain plan) it provided for payment of the full balance of the identified debts within the life of the Chapter 13 plan. 6 Put simply, under a full- payment plan, Bozeman’s entire debt to MCS (including both the arrearages and any remaining balance) would be considered fully paid when Bozeman completed payments on her Plan.

MCS did not object to Bozeman’s Plan. Nor did it initially file an amended claim.7 On January 9, 2017, the bankruptcy court held a confirma- tion hearing. The Trustee filed a summary of the confirmed Plan.

That summary reiterated that Bozeman would make 58 monthly payments of $503.00 to the Trustee. And it listed MCS as the only secured creditor. In addition, the summary identified the value of the collateral supporting MCS’s claim as $17,180.00, with an inter- est rate of 7.57%, and monthly payments of $454.00. The Trustee

6 The district court referred to this type of plan as a full-balance plan. These terms are interchangeable, so for the sake of simplicity, we use the term “full- payment plan.”

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Just over a year later, in March 2018, MCS moved to dismiss the bankruptcy proceeding because Bozeman fell behind on her Plan payments. MCS and Bozeman negotiated a resolution, and MCS withdrew its motion to dismiss.

With the Plan back on track, a little more than a year later, on May 13, 2019, the Trustee filed notice that Bozeman had com- pleted her payments under her Plan. The “Notice of Final Cure Payment” said that Bozeman had successfully paid $6,817.42 to the Trustee under the Plan. According to the Trustee, this figure con- stituted the “[e]ntire mortgage debt” owed MCS. So the Notice of Final Cure Payment declared that Bozeman had paid her “prepeti- tion arrearage” balance of $6,817.42 in full and that she had no re- maining payments under the Plan.

The next day, MCS objected. Although Bozeman had paid the full amount “required to cure the default on the arrearage claim,” MCS explained, she had paid nothing towards the remain- ing $15,032.73 balance due on her mortgage. So on June 12, MCS moved to lift the automatic stay on enforcement proceedings so it could seek to foreclose on Bozeman’s home. 8

8 When a bankruptcy case is filed, other litigation against the debtor is auto- matically stayed. See 11 U.S.C. § 362.

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21-10987 Opinion of the Court 9 Three months later, on September 12, 2019, Bozeman moved to release the lien MCS held on her property. She argued that at the outset of the bankruptcy proceeding, she proposed to pay her entire debt to MCS. And, she continued, she had paid MCS everything it had asked for in its original proof of claim. Having paid MCS’s original claim, Bozeman asserted, she satisfied the lien MCS held against her property, so the court should treat the lien as satisfied and released.

MCS objected to Bozeman’s motion to discharge the bank- ruptcy and release the lien. It raised a series of arguments.

First, MCS contended that Bozeman had not complied with the straightforward terms of the Plan. The Plan acknowledged a $17,180.00 debt and required 58 consecutive payments. That debt had not been paid, and not all 58 payments had been made.

Second, MCS asserted that the Plan was illegal at the outset.

Under the antimodification provision, MCS argued, a plan cannot modify the rights of a holder of “a claim secured only by a security interest in real property that is the debtor’s principal residence.”

That, MCS asserted, described its lien here. So, MCS reasoned, the bankruptcy court was not free to modify the terms of its mortgage claim by approving Bozeman’s Plan to the extent that it purported to extinguish the mortgage five years short of its maturity date and “cram[] down the interest rate.”

Relatedly, MCS noted that 11 U.S.C. § 1322(c)(2) excuses compliance with the antimodification provision when “the last USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 10 of 39

Third, MCS contended that longstanding principles of bank- ruptcy law prohibit invalidation of a secured lien through bank- ruptcy. As MCS saw things, a lien, particularly a mortgage lien, “survives” a confirmed Chapter 13 plan, and the general rule is that liens “pass through” bankruptcy unaffected. According to MCS, bankruptcy can extinguish an in personam claim against a debtor, but it does not eliminate an in rem claim against the debtor’s prop- erty.

Finally, MCS argued that our decision in In re Bateman squarely controlled the case. There, we held that “a secured cred- itor’s claim for mortgage arrearage survives the confirmed plan to the extent it is not satisfied in full by payments under the plan, or otherwise satisfied.” Universal Am. Mortg. Co. v. Bateman (In re Bateman), 331 F.3d 821, 822 (11th Cir. 2003). Were that not the case, we explained, we “would deny the effect of 11 U.S.C. § 1322(b)(2), which, in effect, prohibits modifications of secured claims for mortgages on a debtor’s principal residence.” Id. In response, Bozeman made four primary points.

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21-10987 Opinion of the Court 11 First, she said that MCS got what it had bargained for. As Bozeman saw things, MCS had asked for $6,817.42 plus interest, and that’s exactly what it received. Bozeman pointed out that MCS could have amended its claim before the claim submission dead- line, but it failed to do so. Nor did it offer any “excuse either for its initial failure or for sleeping on its rights until the Plan had con- cluded,” Bozeman asserted.

Second, Bozeman argued she would be unfairly prejudiced if the bankruptcy court did not discharge her debt to MCS. This was so, Bozeman explained, because Bozeman had to pay her un- secured creditors in full with what was left after she paid the arrear- ages claim, since MCS had failed “to amend its proof of claim to accurately represent what was owed . . . .”

Third, Bozeman acknowledged the discrepancy between the debt she outlined in her plan (the $17,180.00, with an interest rate of 7.57%) and the debt MCS claimed in its proof of claim ($6,817.42). But in her view, MCS’s smaller claim superseded the Plan’s estimation of the amount of her debt to MCS.

And fourth, Bozeman argued that the Supreme Court’s de- cision in United Student Aid Funds, Inc. v. Espinosa, 559 U.S. 260 (2010), foreclosed MCS’s challenge to the Plan based on the alleged improper confirmation of the Plan. To the extent this Court’s de- cision in Bateman conflicted with Espinosa, Bozeman suggested that Espinosa controlled.

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We now consider MCS’s appeal.

II.

We “sit[] as a second court of review.” Yerian v. Webber (In re Yerian), 927 F.3d 1223, 1227 (11th Cir. 2019) (quotation omitted).

In that role, we “examine[] independently the factual and legal de- terminations of the bankruptcy court and employ[] the same stand- ards of review as the district court.” Id. When, as here, the district court affirms the bankruptcy court’s order, we review the bank- ruptcy court’s decision. Brown v. Gore (In re Brown), 742 F.3d 1309, 1315 (11th Cir. 2014). In so doing, we review the bankruptcy court’s legal conclusions de novo and its factual findings for clear error. Id. III.

The only question we address in this appeal is whether Bo- zeman’s payoff of her Plan entitled her to satisfaction of MCS’s lien on her home. Our prior precedent requires us to conclude it did not. We divide our analysis into two parts. In Section A, we ex- plain why the Plan modified MCS’s rights in violation of the Bank- ruptcy Code’s antimodification provision, so our precedent USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 13 of 39

21-10987 Opinion of the Court 13 requires us to conclude the Plan was not a legal one. Section B shows why, despite the preclusive effect of the confirmed plan, the bankruptcy court should not have released MCS’s lien.

A. The antimodification provision prohibited the Plan from modifying MCS’s rights as a homestead mortgagee.

We divide our discussion into three parts. In Section 1, we show why the antimodification provision’s text and our precedent require us to conclude that the Plan unlawfully purported to mod- ify MCS’s rights as a homestead mortgagee. Section 2 explains how Bozeman improperly used a full-payment plan and why that im- proper use cannot modify MCS’s rights as a homestead mortgagee.

And in Section 3, we reject Bozeman’s argument that the Supreme Court abrogated our precedent that requires us to conclude that Bozeman’s Plan did not modify MCS’s rights as a homestead mort- gagee.

1. The statutory text and our prior precedent require us to conclude that, to the extent the Plan purported to modify MCS’s rights as a homestead mortgagee, the Plan was not legal under the Bankruptcy Code. Because this case requires us to consider what the Bank- ruptcy Code requires, we begin with the statutory text. See Hey- man v. Cooper, 31 F.4th 1315, 1318 (11th Cir. 2022) (“As in every statutory-interpretation case, we start with the text—and, if we find it clear, we end there as well.”) (citation and quotation marks omit- ted). In construing the terms of the statute, we give them their USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 14 of 39

The antimodification provision states, as relevant here, that a bankruptcy “plan may—(2) modify the rights of holders of se- cured claims, other than a claim secured only by a security interest in real property that is the debtor’s principal residence.” 11 U.S.C. § 1322(b)(2) (emphasis added). In other words, a plan may not “modify the rights of holders of . . . a claim secured only by a secu- rity interest in real property that is the debtor’s principal resi- dence.” By its plain language, then, this provision prohibits bank- ruptcy plans from modifying the rights of the holder of a claim se- cured by only a security interest in real property that is the debtor’s principal residence—rights like MCS’s at issue here.

Still, other parts of § 1322 limit this prohibition on modifica- tion of homestead mortgage loans. “[N]otwithstanding” § 1322(b)(2), § 1322(b)(5) authorizes bankruptcy plans to “provide for the curing of any default within a reasonable time and mainte- nance of payments while the case is pending on any unsecured claim or secured claim on which the last payment is due after the date on which the final payment under the plan is due.” 11 U.S.C. USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 15 of 39

21-10987 Opinion of the Court 15 § 1322(b)(5) (emphasis added). So for situations when a debtor’s outstanding mortgage secured by her principal home is not due to be paid off until after the plan expires, and her payments on that mortgage are in arrears—like Bozeman’s situation—a plan may al- low the debtor to catch up on her arrearages, while maintaining her monthly payments, and avoid foreclosure. By design, under a plan like that—a cure-and-maintain plan—after the debtor is dis- charged from bankruptcy, the debtor must continue to make the payments remaining on the original payment schedule for the mortgage. We refer to § 1322(b)(5) as the “cure-and-maintain ex- ception.”

By its terms, then, the cure-and-maintain exception author- izes only two things with respect to a principal-residence-backed mortgage when the last payment is due after the plan ends: (1) modification of the rights of the mortgage-holder only as those rights relate to collection of arrears on the debt and (2) mainte- nance of current payments on the mortgage loan. Id. It does not contemplate modification of the mortgage holder’s rights to re- ceive payments remaining on the mortgage after the completion of the plan. See id. In contrast—and again “[n]otwithstanding subsection (b)(2) and applicable nonbankruptcy law,” § 1322(c)(2)’s text reflects that it deals solely with cases when “the last payment on the original payment schedule for a claim secured only by a security interest in real property that is the debtor’s principal residence is due before the date on which the final payment under the plan is due.” 11 USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 16 of 39

It is enough to observe that the short-term exception does not au- thorize an exception to the antimodification provision’s prohibi- tion on modifications of a homestead-backed mortgage loan when the original payment schedule contemplates the final payment af- ter the plan period expires.

In sum, then, in § 1322, Congress three times expressly or implicitly protected from modification the rights of homestead- mortgage lenders as they concern those lenders’ secured interests in the debtor’s principal residence, when the final original payment schedule does not expire before the plan period ends. We have explained that the Code makes these protections because “favora- ble treatment of residential mortgagees was intended to encourage the flow of capital into the home lending market.” Universal Am.

Mortg. Co. v. Bateman (In re Bateman), 331 F.3d 821, 826 (11th Cir. 2003) (quoting Nobelman v. Am. Savs. Bank, 508 U.S. 324, 332 (1993) (Stevens, J., concurring) (quotation marks omitted)).

On the other side of the equation, to protect debtors in a relationship with a homestead-mortgagee, the Bankruptcy Code USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 17 of 39

21-10987 Opinion of the Court 17 checks “[t]he lender’s power to enforce its rights—and, in particu- lar, its right to foreclose on the property in the event of default”— through the Code’s automatic-stay provision. Id. (quoting Nobel- man, 508 U.S. at 330 (quotation marks omitted)).

Consistent with the concern for encouraging homestead mortgages, the Supreme Court has emphasized that, by its terms, § 1322(b)(2) protects “the rights” of homestead-mortgagees, as op- posed to “claims.” Nobelman, 508 U.S. at 328. Towards that end, the Court has explained, § 1322(b)(2) “does not state that a plan may modify ‘claims’ or that the plan may not modify ‘a claim se- cured only by’ a home mortgage. Rather, it focuses on the modifi- cation of the ‘rights of holders’ of such claims.” Id. The Bankruptcy Code does not define the term “rights.” Id. at 329. But the Supreme Court has instructed courts to look to state law to determine the rights a homestead mortgagee possesses under § 1322(b)(2). Id. (citations omitted). Here, MCS’s rights are “reflected in the relevant mortgage instruments, which are en- forceable under [Alabama] law.” Id. MCS and Bozeman signed a promissory note and mortgage that granted MCS a security interest in Bozeman’s property. Those instruments gave MCS the right to foreclose on Bozeman’s prop- erty if Bozeman defaulted on her obligation to make payments to MCS in the agreed-upon amounts. Under the promissory note, Bo- zeman needed to pay MCS the $14,000 she borrowed plus 19.70% in interest annually. The note proposed 108 monthly payments of $277.67 unless Bozeman exercised her right to pay off her balance USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 18 of 39

We have also recognized as much. In In re Dukes, we said that “[a] creditor’s rights ‘protected from modification by § 1322(b)(2)’ are the rights under the original loan instruments as de- fined by state law.” Dukes v. Suncoast Credit Union (In re Dukes), 909 F.3d 1306, 1331 (11th Cir. 2018) (quoting Nobelman, 508 U.S. at 329–30).

Despite these rights that the parties bargained for and Ala- bama law protected, the bankruptcy court deemed MCS’s lien in Bozeman’s residence to be satisfied and released. It did so even though Bozeman paid MCS only the $6,817.42 in arrearages and has yet to pay the remaining balance. But both Supreme Court and our precedent require us to conclude that declaring a homestead- mortgagee’s lien satisfied before the debt the lien secures is paid in full constitutes an impermissible modification of the homestead- mortgagee’s rights under the antimodification provision.

We begin with Nobelman. There, the Supreme Court con- sidered the debtors’ attempt to void the portion of their creditor’s lien that exceeded the value of the partially underwater home the lien secured. Nobelman, 508 U.S. at 325–26. The debtors relied on USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 19 of 39

21-10987 Opinion of the Court 19 11 U.S.C. § 506(a) to argue that the homestead mortgagee’s claim was secured up to only the current value of the home, and the re- mainder of the claim was unsecured. Id. at 328. They asserted that the antimodification provision protects only “holders of secured claims,” and the creditor held a secured claim only to the extent of the home’s value. Id. The Supreme Court disagreed. The Court concluded that the debtors’ argument “fail[ed] to take adequate account of § 1322(b)(2)’s focus on ‘rights.’” Id. at 328. The antimodification provision did not prohibit the modification of “claims”; rather, it prohibited the modification of “‘the rights of holders’ of such claims,” the Court explained. Id. And state law and the underlying mortgage instruments revealed that the creditor possessed the right to, among other things, retain its lien until its debt was paid off. Id. at 329. So, the Court held, bifurcating the creditor’s claim, and thus partially stripping its lien, would constitute a modification of its rights in violation of the antimodification provision. Id. at 331.

Here, the problem is worse than that. The bankruptcy court’s order did not just release MCS’s lien in part; it released it in full. Even though MCS had a secured interest in Bozeman’s home, MCS has received payment for only the arrearages that were in- cluded in its claim. So release of MCS’s lien would cause the re- mainder of its interest to simply evaporate, regardless of its sub- stantive rights under the terms of the mortgage and Alabama law.

Because Bozeman obtained the release before she repaid MCS un- der the terms of the contract, we must conclude that the order USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 20 of 39

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21-10987 Opinion of the Court 21 Also in Bateman, we cited with approval the Fifth Circuit’s decision in Simmons v. Savell (In re Simmons), 765 F.2d 547 (5th Cir. 1985). There, the debtor’s plan had inaccurately characterized the creditor’s claim. 765 F.2d at 549. The Fifth Circuit rejected the debtor’s argument that the inaccurate characterization effectively “lift[ed] the construction lien from the homestead and vest[ed] the interest of the property in the debtor ‘free and clear of any claim or interest of any creditor.’” Bateman, 331 F.3d at 831 (quoting Sim- mons, 765 F.2d at 555). Instead, the Fifth Circuit held the creditor’s lien on the debtor’s homestead “remained unimpaired by the order of confirmation.” Id. (quoting Simmons, 765 F.2d at 559). So we explained in Bateman that, under Simmons, “a lien on a mortgage survives the § 1327 res judicata effect of a confirmed plan.” Id. We reached a similar conclusion in Dukes. There, we held that even if the debtor’s plan “provided for” her mortgage, we could not discharge the debt she owed because doing so would vi- olate the antimodification provision. Dukes, 909 F.3d at 1320. As we explained, “a discharge of a debtor’s obligations under his resi- dential mortgage would dramatically modify the rights of the holder of that mortgage.” Id. The debtor argued that discharge was not a modification because the creditor could still foreclose on the property, even if it could not seek a deficiency judgment against the debtor. Id. at 1320–21. We rejected that argument. In so do- ing, we reasoned that “[r]emoval of the [creditor’s] right to pursue in personam liability against [d]ebtor” would “strip[] the [creditor] of a right provided by the original loan instrument.” Id. at 1321.

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Releasing a mortgagee’s lien would modify its rights even more dramatically than discharging the debtor’s obligations under the mortgage. After all, regardless of whether a mortgagee can seek in personam relief against a debtor, a mortgagee that retains its lien can use that lien “to collect future obligations” through an in rem proceeding against the property. Dukes, 909 F.3d at 1322. But if MCS’s lien is released here, MCS would have no mechanism to col- lect the remaining balance.

The Code’s protections for the rights of primary-residential mortgage holders forbid that result. So they prohibit releasing a lien before the terms of the primary-residential mortgage are satis- fied. Indeed, the Supreme Court has long recognized the protec- tion bankruptcy law offers against the invalidation of a creditor’s lien. See Dewsnup, 502 U.S. at 418–19 (“[N]o provision of the pre- Code statute permitted involuntary reduction of the amount of a creditor’s lien for any reason other than payment on the debt.”) (citing Long v. Bullard, 117 U.S. 617, 620–621 (1886)). 10

10 This is not to say that the modern Bankruptcy Code completely lacks the authority to strip or void liens or that liens always survive bankruptcy. See, e.g., Wells Fargo Bank, N.A. v. Scantling (In re Scantling), 754 F.3d 1323, 1325 (11th Cir. 2014) (holding that the Bankruptcy Code authorizes “a debtor [to] ‘strip off’ a wholly unsecured junior mortgage in a Chapter 20 case.”). In fact, USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 23 of 39

21-10987 Opinion of the Court 23 Bozeman resists the conclusion that releasing MCS’s lien vi- olates the antimodification provision. She asserts that her Plan con- templated paying MCS’s entire claim, so her payments through the Plan amounted to early payment of the full balance owed to MCS, and they satisfy the full scope of her obligations. But Bozeman’s position does not square with controlling legal authority. Both the text of the statute and Nobelman instruct that the critical inquiry for the antimodification provision involves the “rights of holders.”

Nobelman, 508 U.S. at 328 (quoting 11 U.S.C. § 1322(b)(2)).

So while it’s true that the sole timely proof of claim that MCS filed during the bankruptcy proceeding sought only $6,817.42 in arrears, nothing about that claim (or the absence of any addi- tional claim) changed the fact that MCS was entitled under the terms of the mortgage and Alabama law to receive full payment on the balance of its loan. In fact, our precedent is clear that a secured creditor is not required to file a claim at all, as “it will always be able to look to the underlying collateral to satisfy its lien.” Bate- man, 331 F.3d at 827. So we are not persuaded that MCS’s arrear- ages-only claim changed the nature of its rights. Even though Bo- zeman paid MCS’s full arrearages claim through the Plan, MCS re- tains the right to receive the entire balance. The Code precludes

in Dewsnup, the Supreme Court recognized historical precedent for modify- ing a creditor’s lien in “reorganization proceedings.” Dewsnup, 502 U.S. at 418–19. But we are talking here about a primary-residential mortgage holder’s lien, which, as we’ve noted, is a right subject to the antimodification provision.

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2. Bozeman’s full-payment Plan cannot modify MCS’s rights.

Bozeman insists that Bateman and Dukes have no bearing on the outcome here because they both concerned cure-and-main- tain plans whereas Bozeman proceeded under a full-payment plan.

We disagree. In fact, Bozeman’s use of a full-payment plan further confirms that a release of MCS’s lien is improper. To explain why, we begin with the text and then discuss Bateman and Dukes specif- ically.

Chapter 13 permits debtors to structure their plans as a cure- and-maintain plan or a full-payment plan. As we’ve noted, a cure- and-maintain plan allows a debtor to pay off her arrearages and make separate monthly payments on her mortgage so she can avoid foreclosure. Green Tree Acceptance, Inc. v. Hoggle (In re Hoggle), 12 F.3d 1008, 1010 (11th Cir. 1994). In a full-payment plan, by contrast, a debtor can combine the arrearages she owes with the full outstanding balance of the loan to create a single monthly payment. See 11 U.S.C. § 1325(a)(5)(B). That way, after the debtor has made all her payments under the plan, she will have paid off the entire loan and satisfied the full amount of her obliga- tion.

Here, Bozeman unambiguously elected to structure her Plan as a full-payment plan. And the Code supports her right to do USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 25 of 39

21-10987 Opinion of the Court 25 so, as cure-and-maintain plans are a permissible, but not manda- tory, mechanism to structure long-term debt. In re Chappell, 984 F.2d 775, 780 (7th Cir. 1993). 11 But whatever the structure of her plan, the antimodification provision forbids modification of MCS’s substantive rights. 11 U.S.C. § 1322(b)(2). Therefore, absent an exception to the antimodification provision, Bozeman’s Plan could not modify MCS’s right to receive the full loan balance before MCS’s lien is released.

And here, no exception authorized Bozeman’s Plan’s at- tempt to modify MCS’s right to receive the remaining balance on the primary-residential mortgage before MCS’s lien could be re- leased. Bozeman has identified no permissible exception, and the text of the Bankruptcy Code and precedent preclude our finding any.

That is so because Nobelman suggests that we must find any exception to the antimodification provision in the Code’s text. In Nobelman, for example, the Supreme Court “recognize[d] two in- stances in which the antimodification provision of § 1322(b)(2) does not apply.” Dukes, 909 F.3d at 1321. One includes § 1322(b)(5)’s authorization of cure-and-maintain plans, which are “expressly exempted from the antimodification provision.” Id. (cit- ing Nobelman, 508 U.S. at 330). Another is § 362’s automatic-stay provision, which “does not alter future rights or obligations.” Id. “[T]he most common use by far” of cure-and-maintain plans “is to cure de- faults on residential mortgages.” 8 Collier on Bankruptcy ¶ 1322.09[2].

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As we’ve explained, our decisions in Bateman and Dukes confirm the protections that the antimodification provision re- quires be afforded to mortgage-holders’ rights.

As an initial matter, neither Bateman nor Dukes purports to cabin its reasoning to cases involving cure-and-maintain plans. And both cases held that the underlying bankruptcy plans would im- properly modify the secured creditors’ rights if the liens were re- leased before the entire balances were paid. Bateman, 331 F.3d at 12 We have also recognized an additional express exception to the antimodifi- cation provision in § 1322(c)’s short-term exception. Am. Gen. Fin., Inc. v. Paschen (In re Paschen), 296 F.3d 1203, 1207 (11th Cir. 2002). But as we ex- plained earlier, see supra at 15–16, § 1322(c) does not apply here.

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21-10987 Opinion of the Court 27 832; Dukes, 909 F.3d at 1320. If that is true in the context of cure- and-maintain plans, it must also be true in the context of full-pay- ment plans. After all, no statutory basis authorizes full-payment plans to provide fewer protections to homestead mortgage hold- ers’ rights than cure-and-maintain plans offer. 13 Nor are we aware of any statutory basis upon which full-payment plans can impose any modification on mortgage holder’s rights without their express agreement.

The Trustee argues that the factual distinction between cure-and-maintain plans and full-payment plans is “critical” be- cause mortgage liens will always survive a cure-and-maintain plan, but a full-payment plan is designed to discharge all debts provided for in the plan. This misses the point. That a full-payment plan is designed to discharge all debts provided for in the plan does not change the fact that the antimodification provision precludes the modification of the homestead mortgage holder’s rights. Nor does our decision prevent a debtor from using a full-payment plan to pay off her full mortgage balance, discharge her debt, and satisfy the corresponding lien. But to do so, the debtor must, in fact, use her full-payment plan to pay the full balance she owes.

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In sum, Bozeman’s use of a full-payment plan instead of a cure-and-maintain plan does not alter our conclusion that her Plan purports to improperly modify MCS’s rights in violation of § 1322(b)(2).

3. Espinosa did not abrogate Bateman.

Bozeman also argues that Bateman should not control here because, in her view, the Supreme Court’s decision in United Stu- dent Aid Funds, Inc. v. Espinosa, 559 U.S. 260 (2010), “displaced the rationale in Bateman, to the extent that when a creditor has notice that a plan proposes to modify the rights of a creditor and the cred- itor fails to object to confirmation or timely appeal, the confirmed plan remains enforceable and binding on the creditor.” Appellee’s Br. at 10 (citing Espinosa, 559 U.S. at 275). We disagree.

In Espinosa, a debtor sought to discharge the interest that had accrued on his student-loan debt. He did so even though he did not show “undue hardship” in an adversary proceeding—a USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 29 of 39

21-10987 Opinion of the Court 29 showing required to discharge certain student-loan debts. 559 U.S. at 263–64 (citing 11 U.S.C. §§ 523(a)(8), 1328; Fed. R. Bankr. P. 7001(6)). The student-loan creditor received notice of the plan but did not object based on the debtor’s failure to show undue hardship or initiate an adversary proceeding. Id. at 265. And the bankruptcy court confirmed the debtor’s plan. Id. After the debtor completed payments on the principal he owed, the court discharged the ac- crued interest due the creditor. Id. at 265–66. Six years after the debt had been discharged (and ten years after the initial confirma- tion), the student-loan creditor filed a motion under Federal Rule of Civil Procedure 60(b)(4) seeking to set aside as void the bank- ruptcy court’s order confirming the plan. Id. at 266.

The Supreme Court held the bankruptcy court’s confirma- tion order was not “void” under Rule 60(b)(4). It explained that “[a] judgment is not void . . . simply because it is or may have been erroneous,” and a Rule 60(b)(4) motion “is not a substitute for a timely appeal.” Id. at 270 (citations omitted). Instead, Espinosa held that Rule 60(b)(4) applies only when an error that affects juris- diction or that affects due process by depriving parties of notice oc- curs. Id. at 271.

As we explain below, Espinosa has no bearing on the release of a lien after a confirmed plan erroneously modifies a homestead- mortgagee’s rights. And we do not read Espinosa as having abro- gated Bateman for five reasons.

First, the Supreme Court expressly limited Espinosa’s hold- ing to collateral challenges to confirmed Chapter 13 plans under USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 30 of 39

We explain what we mean by this second reason in our sec- ond point: Bateman emerged in a significantly different procedural posture than Espinosa. In Espinosa, the creditor brought its Rule 60(b)(4) motion challenging the discharge order ten years after the debtor’s plan had been confirmed and six years after his debt had been discharged. Espinosa, 559 U.S. at 265–66. In Bateman, by contrast, the creditor brought its challenge after plan confirmation but before the underlying debt had been discharged. See Bateman, 331 F.3d at 823. So though the challenge was collateral in one sense

14 In In re Le Centre on Fourth, LLC, we applied Espinosa to a bankruptcy dispute emerging outside the Rule 60(b) context. See Jackson v. LeCentre on Fourth, LLC (In re Le Centre on Fourth, LLC), 17 F.4th 1326, 1334 (11th Cir. 2021). But in Le Centre, we relied on Espinosa for its holding concerning the notice due a creditor to satisfy due process. Id. (discussing Espinosa, 559 U.S. at 272). We did not consider or address Espinosa’s impact, if any, on the anti- modification provision.

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21-10987 Opinion of the Court 31 (as it related to the lawfulness of the plan), it was not in another (as it related to the amount of the debt to be discharged upon comple- tion of the plan). The same is true here: though MCS did not object to Bozeman’s plan before confirmation, it timely objected to and appealed the bankruptcy court’s decision to release its lien. And unlike the creditor in Espinosa, MCS did not bring its challenge years after the fact under Rule 60(b)(4).

Third, a fair reading of Espinosa confirms that the Court was primarily concerned with the meaning of a “void” judgment under Rule 60(b)(4). The Court held that a judgment is “void” under that provision “only in the rare instance where a judgment is premised either on a certain type of jurisdictional error or on a violation of due process that deprives a party of notice or the opportunity to be heard.” 559 U.S. at 271. Espinosa went on to explain that neither such circumstance applied in that case, and it rejected the creditor’s arguments urging the Court to “expand the universe of judgment defects that support Rule 60(b)(4) relief.” Id. at 273. Even though the Court agreed with the creditor that the bankruptcy court made a legal error, the Court held that the error did not “render [the bankruptcy court’s] subsequent confirmation order void for pur- poses of Rule 60(b)(4).” Id. at 274. So at every opportunity, Espi- nosa discussed its holding in the context of Rule 60(b)(4) and the meaning of “void.” In short, the opinion did not purport to decide USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 32 of 39

Id. In this sense, Bateman and Espinosa are at peace with each other (and with our decision here) in their recognition that

559 U.S. at 276–78 (discussing 11 U.S.C. §§ 523(a)(8), 1328(a)(2)). Neither this case nor Bateman involves § 523(a)(8) or § 1328(a)(2), so we do not address Espinosa’s impact on the interpretation of those provisions.

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21-10987 Opinion of the Court 33 confirmed bankruptcy plans are immune from collateral attack, even if they were erroneously confirmed.

Fifth, our decision in Dukes reaffirmed our holding in Bate- man to prohibit discharge of homestead-mortgage debt if doing so would modify a creditor’s rights in violation of the antimodifica- tion provision—even though the plan erroneously provided for the discharge. Dukes, 909 F.3d at 1321 (citing Bateman, 331 F.3d at 822); see also Hope v. Acorn Fin., Inc., 731 F.3d 1189, 1194 (11th Cir. 2013) (relying on Bateman after Espinosa). Because we de- cided Dukes after the Supreme Court issued Espinosa, even if we thought Espinosa compelled a different outcome, we would still be bound by Dukes. See Keohane v. Fla. Dep’t of Corr. Sec’y, 981 F.3d 994, 1005 (11th Cir. 2020) (Rosenbaum, J., dissenting from the de- nial of rehearing en banc) (“[W]e have held that the prior-precedent rule binds later panels even when the prior panel’s decision failed to mention controlling Supreme Court precedent and reached a holding in conflict with that precedent.”) (citing Smith v. GTE Corp., 236 F.3d 1292, 1302–03 (11th Cir. 2001)).

At bottom, we are convinced that our decision in Bateman remains intact after the Supreme Court’s decision in Espinosa. And as we explained earlier, Bateman requires us to conclude that re- leasing MCS’s lien would improperly modify its rights and there- fore violate § 1322(b)(2).

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MCS’s challenge also raises the question of whether the res judicata effect of the confirmation order requires release of MCS’s lien. We hold it does not.

The Bankruptcy Code makes clear that confirmation of a plan carries real weight. Specifically, the Code mandates that “[t]he provisions of a confirmed plan bind the debtor and each creditor, whether or not the claim of such creditor is provided for by the plan, and whether or not such creditor has objected to, has ac- cepted, or has rejected the plan.” 11 U.S.C. § 1327(a). The upshot of this provision is “[c]onfirmation has preclusive effect, foreclosing relitigation of any issue actually litigated by the parties and any is- sue necessarily determined by the confirmation order.” Bullard v. Blue Hills Bank, 575 U.S. 496, 502 (2015) (citation omitted).

We have also explained that “[p]reclusion under § 1327 is somewhat harsher than common law preclusion” and that a con- firmed plan “is given the same effect as any district court’s final judgment on the merits.” Bateman, 331 F.3d at 830; Wallis v. Jus- tice Oaks II, Ltd. (In re Justice Oaks II, Ltd.), 898 F.2d 1544, 1550 (11th Cir. 1990). A confirmed plan has this effect “even if the plan does not, by its terms, comply with the Bankruptcy Code.” Hope, 731 F.3d at 1194.

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21-10987 Opinion of the Court 35 As we have explained, the Plan at issue here violated the an- timodification provision. So it should not have been confirmed.

As a reminder, the Plan impermissibly allowed Bozeman to pay only MCS’s arrearages claim and ignore the remaining balance Bo- zeman owed on her mortgage. But despite this error, because of the Code’s finality provision, Bozeman’s Plan retains preclusive ef- fect and is therefore valid and enforceable.

We explored the importance of finality of confirmed plans in Bateman. There, although the creditor failed to object to a le- gally erroneous plan, it later filed a motion to dismiss the bank- ruptcy proceeding because the plan never should have been con- firmed. 331 F.3d at 833. Though we agreed the plan should not have been confirmed, we rejected the argument that the bank- ruptcy proceeding should be dismissed for that reason. Id. We noted that the creditor had several opportunities to raise its objec- tions to the plan before the plan was confirmed and obtained pre- clusive effect. Id. And we expressed concern that the prejudice associated with unwinding the plan “would far exceed the possible benefit.” Id. For largely the same reasons, MCS cannot now complain about infirmities with the Plan. MCS had ample opportunity to participate in the underlying proceeding and file a timely amended claim with the full balance it was owed. MCS also could have ob- jected to the Plan’s confirmation and argued that the Plan imper- missibly modified its rights. And MCS should have noticed, far ear- lier than it did, that Bozeman’s Plan was structured as a full- USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 36 of 39

But MCS’s errors do not change the fact that the Code still affords special protections to homestead-mortgage holders’ rights.

So even though our cases have recognized the importance of final- ity, they have also said time and again that secured liens survive bankruptcy proceedings. Holloway v. John Hancock Mut. Life Ins.

Co. (In re Holloway), 81 F.3d 1062, 1063 n.1 (11th Cir. 1996) (“[D]is- charges in bankruptcy do not affect liability in rem. Thus, liens on property remain enforceable after discharge unless avoidable un- der the Bankruptcy Code.”). In Bateman, for example, we held that the creditor’s secured lien “is unaffected by the Plan and survives the bankruptcy unimpaired.” 331 F.3d at 832. This conclusion flowed naturally from the overarching principle that “a secured creditor need not do anything during the course of the bankruptcy proceeding because it will always be able to look to the underlying collateral to satisfy its lien.” 16 Id. at 827.

16 We relied on the lien’s survival to demonstrate that the creditor will not face significant prejudice from the erroneously confirmed plan, nor will the debtor receive an unwarranted windfall. Bateman, 331 F.3d at 833.

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21-10987 Opinion of the Court 37 We also reached a similar conclusion in In re Thomas, in which we held the creditor retained its lien on a mobile home even though the debtor’s interest was discharged through bankruptcy.

Southtrust Bank of Ala., N.A. v. Thomas (In re Thomas), 883 F.2d 991, 997 (11th Cir. 1990). And in Dukes, we suggested in dicta that, because of the antimodification provision, a creditor’s mortgage would “pass[] through the bankruptcy unaffected even though no proof of claim was filed.” 909 F.3d at 1322; see also SEC v. Wells Fargo Bank, N.A., 848 F.3d 1339, 1344 (11th Cir. 2017) (“In the bankruptcy context, a secured creditor’s lien remains intact through the bankruptcy, regardless of whether the creditor files a proof of claim.”).

Under our case law, then, we must hold that MCS’s lien sur- vived Bozeman’s bankruptcy. Based on the terms of the mortgage and Alabama law, MCS had the substantive right to collect the full balance it lent to Bozeman as well as the right to hold its lien on the property as collateral until the debt had been paid. And under the antimodification provision, Bozeman’s Plan could not legally modify those rights.

Although MCS did not timely object to the Plan’s confirma- tion or appeal the discharge of Bozeman’s debt, MCS did oppose Bozeman’s motion to release its lien, and it timely appealed the bankruptcy court’s order granting her motion. And because releas- ing MCS’s lien before MCS receives full payment would impermis- sibly modify MCS’s rights, MCS’s lien must survive the bankruptcy proceeding. While the finality provision confirms that it is too late USCA11 Case: 21-10987 Document: 45-1 Date Filed: 01/10/2023 Page: 38 of 39

Our decision here follows directly from Bateman. In that case, we acknowledged that the creditor should have raised its chal- lenges earlier and that, if it had, the erroneous plan would not have been confirmed. 331 F.3d at 833. And the creditor’s failure carried consequences, as we rejected the creditor’s motion to dismiss the debtor’s plan, holding that the plan remained valid and enforcea- ble. Id. Still, though, we held that the creditor’s secured claim could not be satisfied until the debtor paid the entire claim amount because “to permit otherwise would deny the effect of 11 U.S.C. § 1322(b)(2), which, in effect, prohibits modifications of secured claims for mortgages on a debtor’s principal residence.” Id. at 822.

The same is true here. MCS should have raised its chal- lenges earlier, and it could have prevented confirmation of Bo- zeman’s Plan. But we cannot hold that MCS’s lien on the property can be deemed satisfied because the antimodification provision protects MCS’s right to receive full recovery, regardless, and MCS has raised a timely challenge to the order releasing its lien. 17 IV.

We hold that release of MCS’s lien before its loan had been repaid in full violates § 1322(b)(2)’s antimodification clause. Until

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21-10987 Opinion of the Court 39 MCS is paid in full, its lien remains intact, and the Bankruptcy Code’s finality provision does not change that fact.18 REVERSED AND REMANDED.

18 Because MCS did not appeal the bankruptcy court’s decision to discharge Bozeman from bankruptcy, we do not consider or disturb that decision.