The following are recent bankruptcy filings in U.S. District Court in Baltimore:
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May 26
* Brown Derby Food Stores Inc., a.k.a. RHS Inc., convenience store operators, U.S. 50 and Lake Street, Salisbury, filed for Chapter 11. Principal: Gary R. Hutchison, controller. Assets: $12,000; liabilities: $250,000
May 27
* Harvey E. Nelson Jr., t/a Custom Carpentry, 101 Aydelotte Road, Salisbury, a cabinetmaker, filed for Chapter 7. Assets: $13,243; liabilities: $29,514
* AB Trucking Co. Inc., 702 Earls Beach Road, Baltimore, trucking and excavation contractor, filed for Chapter 11. Principal: Donald J. Parlett, president. Assets and liabilities are under $50,000 each.
* Muffoletto Optical Co. Inc., 6100 Everall Avenue, Baltimore, manufacturer of precision optical components, filed for Chapter 11. Principal: P. Anthony Jones, vice president and secretary. Assets: none; liabilities: $597,679
May 31
* Gary Wayne Rothgeb, 1520 Marriottsville Road, Marriottsville, d/b/a E&G; Variety, a.k.a. K&G; Specialties filed for Chapter 7. Assets: $5,862; liabilities: $34,194
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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.
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.
*a.k.a. (also known as), d/b/a (doing business as) or t/a (trading as): an assumed name a person uses for a business instead of the actual business name or one's personal name. n/a: not available. L/P: Limited Partnership. P/A: Professional Association.