The following are recent bankruptcy filings in U.S. District Court in Baltimore.
Daval Electric Co. Inc., Route 1, Box 218B, Ridgely. Electrical contracting company filed for Chapter 7. Principals: David Bollinger and Allen Zimmerman Jr. Assets: $14,776. Liabilities: $145,503.
Fairmount Logan Limited Partnership, P.O. Box 4127, Timonium. Real estate partnership filed for Chapter 11. Principal: H. Jerome Fenzel. Assets and liabilities: More than $1,000,000.
GBS Corp. (General Business Services Inc., General Tax Services Inc.), 7134 Columbia Gateway Drive, Columbia. Franchiser of accounting and tax return preparation services filed for Chapter 11. Principal: Robert E. Pirtle. Assets and liabilities: more than $1,000,000.
Harford Building Contractors Inc., 709 Pheasant Drive, Forest Hill. General contractor filed for Chapter 11. Principal: Michael Von Lange. Assets: $3,000. Liabilities: $145,000.
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.