As expected the Junkitz bankruptcy case is proceeding slowly. The only new recent development in court filings is an order issued on January 30th granting the trustee’s request to hire an auctioneer. Presumably this means that the company’s remaining assets such as inventory will be disposed of at auction.
After some contemplation I have decided to report some recent developments in the Panassidi’s personal bankruptcy case as well. Normally at this point in the process I would consider that to be a private matter. However, in this case the new developments in the personal bankruptcy are relevant to the business bankruptcy because they may shed significant light on the Panassidi’s intentions to compensate their creditors in the bankruptcy proceedings.
In late January the Panassidi’s filed their plan with the court for emerging from bankruptcy. Despite having over $350,000 in unsecured debt plus the mortgages on their home, the plan consisted entirely of payments of $50/month for 12 months plus selling or refinancing their home (in which they estimate they have $80,000 equity at most).
The bankruptcy court trustee handling the case filed an objection to the plan almost immediately with the judge assigned to the case, stating the following grounds:
1. The debtor has failed to supply the Trustee with a complete and accurate Form 22C for the following reasons:
• The debtor’s have taken a car deduction on a surrendered vehicle.
2. The debtor’s plan consists of unnecessary or excessive expense items, such as:
• $1,183.00 monthly in automobile payments
• $4,592.00 monthly towards a mortgage
3. The debtor is not paying all disposable income into the plan. Upon sale of the debtor’s home, they will have additional income to dedicate to their Chapter 13 plan.
A hearing is set before the judge on Feb. 19th for him to rule on confirming the plan.
If the plan is confirmed, one of the major unsecured creditors who will receive only pennies on the dollar at most for what he is owed is Felipe Angel (dba International Trading), who is also one of Junkitz’s major creditors. Bankruptcy paperwork lists him as being owed $110,000 personally by the Panassidis. Unfortunately it appears he will be taking major losses in both of these cases unless the bankruptcy trustee in the Panassidi’s personal case is able to convince the judge to amend the plan that was filed.