The following are recent bankruptcy filings in U.S. District Court in Baltimore.
John Philip Inc., 3001 Pulaski Highway, Edgewood. Involved in the mobile home and real estate business, this company is seeking to reorganize under Chapter 11. Principal: John P. Siesman. Assets: $2,604,000. Liabilities: $2,549,712.56
Tidewater Building & Supply Co., 350 N. Aurora St., Easton. This construction and real estate sales firm has filed to dissolve under Chapter 7. Principal: Clifford E. Meredith. Assets: $14,501. Liabilities: $1,097,800.41
Master Musicians Inc., 6710-D Governor Ritchie Highway, Glen Burnie. Retail seller of musical supplies and equipment filed under Chapter 11. Principal: Woodrow Harrison. Assets: $95,638.47. Liabilities: $83,876.82
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.