The following are recent bankruptcy filings in U.S. District Court in Baltimore.
Communication Systems Technology Inc., 9740 Patuxent Woods Drive, Columbia. Electronic and communication systems company filed for Chapter 11. Principal: Stephen E. Brucker. Assets: $4,800,000. Liabilities: $5,800,000.
Lynn O. Morrell (AVK Imprints Inc.), 8424 Charles Valley Court, Towson. Video tennis instruction company filed for Chapter 7. Assets: $12,391. Liabilities: $79,036.
Edwin G. Lawrence (Lawrence Associates), 11436 Cronridge Drive, Owings Mills. Provider of security systems for banks filed for Chapter 7. Assets: $1,080. Liabilities: $94,955.
Jonathan David Cook (Cook's Custom Landscaping), 10778 Frederick Road, Ellicott City. Landscape contracting company filed for Chapter 13. Assets: $256,245. Liabilities: $248,499.
Ferranti Healthcare Systems Corp., Four North Park, Hunt Valley. Provider of computer software to hospitals and health care providers filed for Chapter 11. Principal: Antony J. Sutton. Assets: $10,695,000. Liabilities: $20,656,535.
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.