The following are recent bankruptcy filings in U.S. District Court in Baltimore.
The David Kornblatt Co., Suite 2222, 200 St. Paul St., Baltimore. Real estate development, management and brokerage firm filed for Chapter 11. Principal: David W. Kornblatt. Assets: $1,528,792. Liabilities: $2,452,066.
Fabricators & Welding Specialists Inc. (ARC Welding Service Co.), 2713 North Point Blvd., Baltimore. Custom industrial steel fabrication company filed for Chapter 11. President: W. B. Carruth II. Assets: $487,985. Liabilities: $930,431.
Sheppards Interior Construction Company Inc., 601 N. Milton St., Baltimore. Construction firm filed for Chapter 11. Principal: Jerry M. Sheppard. Assets: $376,698. Liabilities: $1,253,597.
Edward F. Huth Jr. (Accent Floors Carpet Warehouse), 2111 Emmorton Park Road, Edgewood. Retail carpet company filed for Chapter 13. Assets: less than $50,000. Liabilities: between $100,000 and $499,000.
RKB Homes Inc., P.O. Box 703, Finksburg. Residential home construction company filed for Chapter 11. Principal: Robert K. Bowers. Assets: $1,105,900. Liabilities: $1,079,837.
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.