The following are recent bankruptcy filings in U.S. District Court in Baltimore.
American Carpet and Rug Inc., 3540 Fort Meade Road, Laurel. Carpet and rug retail and wholesale business filed under Chapter 7. Principal: James M. Hedrick. Assets: $90. Liabilities: $108,057.
Commercial Equipment Corp., U.S. 1, Box 253, Millington. Truck repair business filed for Chapter 11. Principal: Richard F. Beavers. Assets: $610,046. Liabilities: $600,000.
Leisure Health Club, 425 Manchester Road, Westminster. Health club filed for Chapter 11. Principal: Michael G. Owings. Assets: Approximately $50,000. Liabilities: Approximately $500,000.
Modern World Media Inc., 2050 Lord Baltimore Drive, Baltimore. Video production firm filed under Chapter 11. Principal: Joel M. Peck. Assets: $220,000. Liabilities: $220,000
All Systems Inc., 8302 Elko Drive, Ellicott City. Commercial interior company filed under Chapter 7. Principal: Robert Jachens. Assets: $4,823. Liabilities: $206,276.47
Delmarva Labs Inc., 113 High St., Salisbury. Company that analyzes water and sewage quality filed under Chapter 7. Principal: Frederick J. Grozinger. Assets: $17,816.63. Liabilities: $14,812.24
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.