The following are recent bankruptcy filings in U.S. District Court in Baltimore.
John C. Louis Co., 1805 Cherry Hill Road, Baltimore. Company specializing in sales, service and rental of construction equipment filed for Chapter 11. Principals: George A. Chapelsky. Assets: $9,360,899. Liabilities: $9,155,357.
Diversified Signs Inc., 119 Industry Lane, Forest Hill. Maker of metal and plastic signs filed for Chapter 11. Principals: Harrison E. Gross. Assets: $514,069. Liabilities: $800,254.
Sydney M. Shure Ltd. (Design Pavilion), 10534 York Road, Cockeysville. Interior designer and retailer of furniture filed for Chapter 11. Principals: Sydney M. Shure. Assets: $200,000. Liabilities: $600,000.
Chesapeake Contracting Corp., 46 Barkside Court, Elkton. Plumbing, heating and air-conditioning firm filed for Chapter 7. Principals: Robert W. Pearman and Hugh Christopher Reiley. Assets: $12,571. Liabilities: $51,197.
Maryland Business Machines Inc. (Parking Consults & Equipment Corp.), 400 & 402 E. 25th St., Baltimore. Retailer and wholesaler of time clocks and parking equipment filed for Chapter 11. Principals: Gilbert Holniker. Assets: $330,555. Liabilities: $887,595.
Willard Leroy Smith III (Woody Smith, W.L. Smith III Manufacturing & Supply Co.), Route 1, Box 535 Allen Road, Eden. Zinc anode manufacturing and oystering business filed for Chapter 7. Principals: Willard Leroy Smith III. Assets: $21,400. Liabilities: $19,797.
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.