Modular cosmology is plagued by overproduction of unwanted relics, gravitinos and especially moduli, at relatively low energy scales. Thermal inflation provides a compelling solution to this moduli problem, but invalidates most baryogenesis scenarios. We propose a simple model in which the MSSM plus neutrino mass term $(LH_u)^2$ is supplemented by a minimal flaton sector to drive the thermal inflation, and make two crucial assumptions: the flaton vacuum expectation value generates the $\\mu$-term of the MSSM and $m_L^2 + m_{H_u}^2 < 0$. The second assumption is particularly interesting in that it violates a well known constraint, implying that there exists a nearby deep non-MSSM vacuum, and provides a clear signature of our model which can be tested at future particle accelerators. We show that our model leads to thermal inflation followed by Affleck-Dine leptogenensis along the $LH_u$ flat direction. A key feature of our leptogenesis scenario is that the $H_uH_d$ flat direction is also induced to temporarily acquire a large value, playing a crucial role in the leptogenesis, as well as dynamically shielding the field configuration from the deep non-MSSM minimum, ensuring that the fields relax into our MSSM vacuum.