Bankruptcy Report

October 08, 1990

The following are recent business filings in U.S. District Court in Baltimore.

AUG. 30

Security Office Park Limited Partnership, c/o The Commonwealth Group, 62 Read's Way, New Castle, Del. Operator of office buildings at 7000, 7004 and 7008 Security Blvd. in Baltimore County filed for Chapter 11. Principal: N.A. Assets: $10 million. Liabilities: $11,544,000.

SEPT. 18

Joseph F. Joy Jr. and Martin J. Elease, 405 7th Ave., N.E., Glen Burnie. The land acquisition and development firm, which is a 100 percent owner of JJH Enterprises Corp., filed for Chapter 11. Principals: Joseph F. Joy Jr. and Martin J. Elease. Assets: $6 million. Liabilities: $1,715,371.

SEPT. 26

Gordon Wayne Willet (G & B Construction Co., Sunset View Construction Co.), 10315 Carey Road, Berlin. Construction company filed for Chapter 7. Principal: Gordon Wayne Willet. Assets: $8,787. Liabilities: $344,126.

SEPT. 27

Historic Inns of Annapolis Limited Partnership, 16 Church Circle, Annapolis. Hotel, restaurant and banquet hall business filed for Chapter 11. Principals: Paul M. Pearson II, John Greco and Leland C. Pillsbury. Assets: $13,709,250. Liabilities: $10,750,897.

Scomar Inc. (Rustic Inn), 1803 West St., Annapolis. Three creditors filed Chapter 7 petition against the business. Principal: N.A. Assets: N.A. Liabilities: more than $125,000.

The following are the most common types of filings under the U.S. Bankruptcy Code.

CHAPTER 7 -- Liquidation. A trustee is appointed to take charge of all the debtor's property, except for certain exceptions allowed in the law. The trustee will sell the remaining property for the benefit of creditors, and unless a creditor objects and is upheld by the court, the debt will be discharged in whole or in part.

CHAPTER 11 -- Reorganization. Available to all individuals or businesses, this chapter is primarily intended to allow an ongoing business to restructure its debt. A successful reorganization depends on filing a plan and obtaining its approval by creditors and the court.

CHAPTER 13 -- Adjustment of debts of an individual with regular income. This chapter provides a method for individual debtors to repay creditors, in full or in part, over a period of up to five years. It ordinarily involves less than $100,000 in unsecured debt and $350,000 in secured debt.

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