Document: 501 U.S. 78 111 S.Ct. 2150 115 L.Ed.2d 66 Curtis Reed JOHNSON, Petitionerv.HOME STATE BANK. No. 90-693. Argued April 16, 1991. Decided June 10, Syllabus After petitioner Johnson defaulted on promissory notes secured with a mortgage his farm, respondent Home State Bank (Bank) began foreclosure proceedings in state court. While were pending, filed for liquidation under Chapter 7 of the Bankruptcy Code, and Court discharged him from personal liability notes. However, because Bank's right to proceed against rem survived bankruptcy, see 11 U.S.C. § 522(c)(2); Long v. Bullard, 117 617, 6 917, 29 L.Ed. 1004, reinitiated once automatic stay protecting estate was lifted. The court entered judgment Bank, but before sale, reorganization 13, listing as claim estate. confirmed plan pay installments, District reversed, ruling that Code does not allow debtor include 13 used secure an obligation which has been proceedings. did reach alternative argument erred finding had proposed good faith feasible. Appeals affirmed, reasoning that, since Johnson's discharged, no longer "claim" subject rescheduling 13. Held: 1. A lien securing debtor's is within meaning 101(5) inclusion approved plan. Congress intended incorporate broadest available definition "claim," Pennsylvania Dept. Public Welfare Davenport, 495 ----, 110 2126, 109 588. As 101(5), "right payment" equitable remedy" mean "nothing more nor less than enforceable obligation." Id., at S.Ct., ----. surviving interest corresponds "enforceable obligation" debtor. Even after obligations have extinguished, creditor still retains form its proceeds sale property. Alternatively, creditor's foreclose can be viewed default underlying obligation. Thus, bankruptcy discharge extinguishes only one mode enforcing claim—an personam action—while leaving intact another—an action. Indeed, need codify supra, presupposes "claims" are discharged. This conclusion consistent other parts Code—which contemplate circumstances may consist nothing property, 502(b)(1), establish phrase " 'claim debtor' includes against" 102(2) Code's legislative background history. contention serial filings Chapters evade limits place Chapters' remedies unpersuasive, expressly prohibited various forms filings, see, e.g., 727(a)(8), yet fashioned similar prohibition regard filings. In addition, full range provisions designed protect creditors, 1325(a), combined Congress' intent construed broadly, makes it unlikely use police process abuse. Pp. 82-88. 2. Because lower courts never addressed issues or plan's feasibility, this declines address those leaves them consideration remand. P. 88. 904 F.2d 563 (CA10 1990), reversed remanded. MARSHALL, J., delivered opinion unanimous Court. W. Thomas Gilman, Wichita, Kan., petitioner. Calvin Dee Rider, respondent. Justice MARSHALL 1 issue case whether by mortgaged property proceeding. We hold such circumstance remains rescheduled 2 * arises efforts farm Petitioner gave totaling approximately $470,000.1 When these notes, initiated During pendency proceedings, Code. Pursuant 727, Bank. Notwithstanding discharge, liquidation. lifted petitioner's estate, 362, proceedings.2 Ultimately, $200,000 3 Before scheduled take place, petition here. plan, listed four annual installments final "balloon equal total value judgment. Over objection, appealed Court, arguing proceedings; argued accepted first arguments disposed ground. See re Johnson, 96 B.R. 326, 328-330 (Kan.1989). 4 affirmed. 1990). Emphasizing reasoned id., 565, 566. Like without considering contentions 5 contrast decision Tenth Circuit case, two Courts concluded even debt Saylors, 869 1434, 1436 (CA11 1989); Metz, 820 1495, 1498 (CA9 1987). Having granted certiorari resolve conflict, 498 781, 112 844 (1991), we now reverse. II provides remedy consumer debtors proprietors relatively small debts. generally H.R.Rep. 95-595, pp. 116-119 (1977), U.S.Code Cong. & Admin.News 1978, 5787, 6076-6080. So long meets eligibility requirements relief 109(e),3 he submit court's confirmation "modif[ies] rights holders claims . unsecured claims," 1322(b)(2), "provide[s] payment all any part [allowed] claim," 1322(b)(6). secures To put question context, must say about nature survives real repayment. But unless provided otherwise, ordinarily limited should obligation; rather, addition sue deficiency enforce assets generally. R. Powell, Law Real Property ¶ 467 (1990). defaulting himself obtaining 727. extinguishesonly "the debtor." 524(a)(1). Codifying rule 1004 (1886), passes through bankruptcy. Owen Owen, 500 1833, --- ---- (1991); Farrey Sanderfoot, 1825, 361. 8 Whether straightforward statutory construction resolved reference text, history, purpose" Under 9 '[C]laim' means— 10 "(A) payment, reduced judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, unsecured; "(B) breach performance if gives rise unsecured." U.S.C.A. (Supp.1991). 12 previously explained language adopt "claim." 588 (1990); also Ohio Kovacs, 469 274, 279, 105 705, 707, 83 649 (1985). 'right payment' [means] ." U.S., 2131.4 Applying teachings trouble concluding terms 101(5). holder Either way, there doubt 14 thus constituted complete termination Rather, claim—namely, action personam—while another—namely, rem. codification little "discharge" would effect extinguishing component well And Code,5 very Bullard otherwise 15 Section example, states "shall determine amount [a disputed] shall amount, except extent unenforceable (emphasis added). words, either 502(b)(1) contemplates like proceeding, Similarly, establishes, "[r]ul[e] construction," fair reading who, nonetheless "claim debtor" purposes 16 history confirm Although pre-1978 Act contained single define "includ[ing] whatever character X corporate reorganizations. 506(1) (1976 ed.) It clear so defined order creditors interests X, S.Rep. 1916, 75th Cong., 3d Sess., 25 (1938); 1409, 1st 39 (1937), established understanding courts. J. Moore L. King, Collier 2.05, 307-308 (14th ed. 1978) ("[I]t noted alone sufficient" X). fashioning 1978 "adop[t] broader [was] found [pre-1978 Act's] rehabilitation chapters." 309, p. 6266 added); accord, 95-989, 21-22 (1978), 5807-08; (recognizing claim). Presuming, must, familiar prevailing Act, Cottage Savings Assn. Commissioner, 499 1503, 113 589 Cannon University Chicago, 441 677, 698-699, 99 1946, 1958-1959, 60 560 (1979), infer fully expected 17 surrounding directly corroborates inference. Committee Reports accompanying explain contemplates, inter alia, "nonrecourse loan agreements where debtor, personally." 315; 28, 5814, 6272. Insofar same properties nonrecourse loan. true, noted, conceive their credit agreement when they it. F.2d, insofar limit loans rather chose general broad enough encompass obligations, understand extend having relevant attributes regardless how come into existence. 18 resists analysis. contends might normally treated deemed merely remainder Serial maintains, remedies. 19 disagree. See, 109(g) (no 180 days dismissal); 727(a)(8) filing six years filing); 727(a)(9) (limitation filing). absence petitions, evident care express prohibitions, convinces us intend categorically benefit who relief. Cf. United States Smith, 1180, 134 (1991) (expressly enumerated exceptions presumed exclusive). 20 fails apprehend significance creditors. authorized finds, faith," 1325(a)(3); assures recovery adequate "if liquidated chapter 7," 1325(a)(4); "accepted plan," obtained claims, "retain[ed] the[ir] lien[s]" distributed allowed claim[s]," 1325(a)(5); will able make payments comply 1325(a)(6). power "issue order, process, necessary appropriate carry out [the Code.]" 105(a). Any implicated files serially given availability provisions, do believe III 21 renews here 1325(a)(3) feasible 1325(a)(6) ground neither feasibility. decline instead leave 22 remanded further opinion. 23 ordered. At time executed, co-owned question. acquired wife's although wife party disposition simplicity refer role course another superior 109(e) states: "Only individual regular income owes, date petition, noncontingent, debts $100,000 $350,000, individual's spouse, stockbroker commodity broker, owe, aggregate $350,000 title." Using definition, held Davenport restitution orders imposed condition probation criminal dischargeable reorganization. subsequently overruled result Davenport. Criminal Victims Protection 1990, Pub.L. 101-581, 3, 104 Stat. 2865. so, however, withdrawing Court's 1328(a), restricting scope of, amending, Consequently, view disturbing our conclusions breadth respect debt." 524(a)(1) "debt," "liability 101(12) (Supp.1991), coextensive Hence, claims.

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