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Camacho Equipment files bankruptcy
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Posted on Nov 14 2011
By Ferdie de la Torre
Reporter
Reporter
Camacho Equipment Co. Inc. filed last week a bankruptcy petition before the U.S. District Court for the NMI.
Camacho Equipment Co., through counsel Timothy Bellas, filed a Chapter 7 petition.
Under a Chapter 7 petition, most assets of the debtors are liquidated as quickly as possible to pay off his or her debts over a period of three to five years.
Bellas listed over 20 creditors that the company owes a total of 366,325.85.
Bellas said the company’s total assets is only $103,638.33 which consists of personal property.
Among the listed creditors are the U.S. Treasury/Internal Revenue Service and the CNMI Revenue & Taxation that hold secured and unsecured claims in the amount of $43,636.11 and $90,600.64 respectively.
Camacho Equipment is the sixth to file bankruptcy in federal court so far this year.
The all-time highest record of bankruptcy cases was in 2005 when 31 cases were recorded.
One of the main reasons why many cases were filed in 2005 was because the Bankruptcy Abuse Prevention and Consumer Protection Act took effect beginning that year. The Act increased the filing fee and made bankruptcy petitions stricter, among other things.
