Although it was a "close question," the bankruptcy court did not err in confirming the 60-month Chapter 13 plan of a debtor who converted post-discharge from Chapter 7 to Chapter 13 while a nondischargeability complaint by a prepetition wrongful discharge judgment creditor was pending.  The Chapter 13 plan represented the debtor's best efforts and committed all of projected his disposable income over the plan period. The court found that a qualifying Chapter 13 debtor "need not be turned away and forced to sell apples on the streets in every case in order to satisfy an impossibly large unsecured obligation, however egregious may have been the conduct which gave rise to the obligation."

However, the landlords were entitled to a claim for administrative rent on account of the estate's postpetition use of the land, and the bankruptcy court erred in calculating that rent merely by arithmetically apportioning the periods of prepetition and postpetition use. The estate's postpetition use, during the height of the growing season, extracted nearly all of the economic value available form the land.  

The bankruptcy court did not err in denying turnover relief to a trustee who avoided a late-filed lien as a preference and sought to recover from the creditor as property of the estate the postpetition/pre-avoidance payments made by the debtor.  The payments, which were made form the postpetition personal service earnings of the Chapter 7 debtor, were not property of the estate and merely served to reduce the amount of the creditor's unsecured claim.

When a State agency files a proof of claim in a bankruptcy case, it waives 11th Amendment immunity as to that claim and as to counterclaims arising out of the same event or occurence which form the basis for the claim.