UNITED STATES BANKRUPTCY COURT 

SOUTHERN DISTRICT OF FLORIDA 

FORT LAUDERDALE DIVISION 

www.flsb.uscourts.gov

In re: Chapter 11 

Beta Music Group, Inc. and Case No. 12199-SMG 

Get Credit Healthy, Inc., Case No. 12201-SMG 

 (Jointly Administered) 

Debtors. 

_____________________________ / 

CONSOLIDATED CHAPTER 11 CASE MANAGEMENT SUMMARY 

In compliance with Local Rule 2081-1(B), the Debtors-in-Possession, Beta Music Group, 

Inc. and Get Credit Healthy, Inc., file this Consolidated Chapter 11 Case Management Summary 

and state: 

The following data represents approximations for background information only and the 

information represents the Debtors’ best estimate in response to some of the ensuing questions. 

1. Date of Order for Relief under chapter 11 (filing date of petition if voluntary chapter 

11 petition): March 5, 2021. 

2. Names, case numbers and dates of filing of related debtors: 

a. Beta Music Group, Inc.., Case No. 21-12199-SMG, filed on March 5, 2021; 

and

b. Get Credit Healthy, Inc., Case No. 21-12201-SMG, filed on March 5, 2021

3. Description of debtor’ business: Beta Music Group, Inc. (OTC PINK: BEMG) 

is a holding company and its sole asset is its 100% ownership of Get Credit Healthy, Inc. Get 

Credit Healthy, Inc. is an entity that provides a platform upon which non-profit FICO and 

HUD-certified counselors provide credit education, housing counseling and a technology 

network to connect borrowers, non-profits, and lenders in a secure environment to help build 

the credit profiles of non-qualified credit candidates.

Get Credit Healthy also utilizes its proprietary processes, platform, and software to integrate 

with lenders to make it easier to recapture leads. It was developed for and by those with 

extensive experience in the mortgage industry.

 

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 1 of 8
4. Locations of debtor’s operations and whether the business premises are leased or 

owned: 

Location Leased Owned 

Beta Music Group, Inc. 

4581 Weston Road, Unit 162 

Weston, FL 33331 

X 

Get Credit Healthy, Inc. 

4581 Weston Road, Unit 162 

Weston, FL 33331 

X 

5. Reasons for filing chapter 11: 

The cost of running the companies’ operations began to exceed the revenue that they 

generated. Additionally, a former officer of the company orchestrated the filing of multiple 

lawsuits against the Debtors in state court, most of which contain unfounded allegations, and 

those lawsuits assert damages in the approximate amount of $1,000,000. The Debtors dispute 

any liability; however, cannot afford the attorneys’ fees that prolonged litigation would 

require. 

In addition to the multiple lawsuits, COVID-19 adversely impacted GCH’s revenue 

stream. Specifically, lenders with which GCH was expecting to consummate a business 

relationship declined to engage with GCH mostly because they did not have the bandwidth 

necessary to devote to the incorporation of GCH while transitioning to a remote work 

environment and handling claims from borrowers seeking financial refuge under federally 

mandated programs. Additionally, GCH’s non-profit credit counseling partners saw a 

decline in enrollment of new clients who could no longer afford the fees associated with credit 

counseling. Because licensing fees that GCH collects from its partners are dependent upon 

consumer enrollment, its revenue decreased as the enrollments declined. 

The Debtors determined that they would not be able to sustain the cost of operations 

over the long term without an infusion of capital. Shortly before filing of these cases, the 

Debtors were able to identify an entity that was both interested in acquiring the Debtors’ 

assets and had the ability to service the Debtors’ obligations related to its platform and 

services. The Debtors entered into a management services agreement with that entity in 

order to preserve the business operations, preserve jobs, and continue to service the Debtor’s 

clients. Pursuant to this agreement, the servicer provides the services to the clients, collects 

the fees due from clients, is responsible to pay costs associated with providing services, and 

pays the Debtor an agreed upon fee. Absent the acquisition by an entity capable of servicing 

the Debtors’ obligations, the Debtors would have no choice but to terminate any remaining 

employees and surrender all assets to the secured lender, resulting in no recovery to any 

other creditor or party in interest and the termination of the Debtor’s platform that services 

approximately 1,000 consumers. 

 

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 2 of 8
6. List of officers and directors, if applicable, and their salaries and benefits at the time 

of filing and during the 1 year prior to filing: 

Officer/Director Salary & Benefits 

Beta Music Group, Inc.: 

Elizabeth Karwowski, President & 

Sole Director 

Salary is $150,000.00 per an employment 

agreement, but Ms. Karwowski did not take any 

salary during the one-year period preceding the 

filing of the bankruptcy petition. Ms. Karwowski 

was also supposed to be granted shares, but did not 

take any. 

Get Credit Healthy, Inc.: 

Elizabeth Karwowski, President & 

Sole Director 

$120,000.00, plus telephone ($300) and payments 

for vehicle and vehicle insurance up to $1000 

monthly. 

7. Debtor's fiscal or calendar year to date gross income and the debtor's gross income 

for the calendar or fiscal year prior to the filing of this petition: 

Gross Income Amount 

Beta Music Group, Inc. 

January 1, 2021 - Petition Date: 

January 2020 – December 31, 2020: 

January 1, 2020 – December 31, 2020: $0.00 

January 1, 2021 to Present $0.00 

Get Credit Healthy, Inc. 

January 1, 2021 - Petition Date: 

January 2020 – December 31, 2020: 

January 1, 2020-December 31, 2020: 

$495,914.44 

January 1, 2021-Present: $100,787.50 

8. Amounts owed to various creditors: 

a. Obligations owed to priority creditors including priority tax obligations: $27,300

Priority Tax Obligations Amount 

IRS $3,553.75 (payroll, social security, 

medicare and other taxes) 

Florida Dept of Revenue $0

Broward County $0

Priority Wages (Beta Music Group) $27,300

IL State Tax $507.87

PA State Taxes $76.24

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 3 of 8
b. With respect to creditors holding secured claims, the name of and amounts owed to 

such creditors and a description and estimated value of all collateral of the debtor 

securing their claims: 

Name of Secured 

Creditor 

Description/Estimated Value Amount Owed 

U.S. Small Business 

Administration 

All assets (Get Credit Healthy 

only)

$150,000 principal, 

plus interest

c. Amount of unsecured claims: (i) Beta Music Group, Inc. - approximately 

$1,336,478.78; (ii) Get Credit Healthy, Inc. – approximately $917,176.22.

9. General description and approximate value of the Debtors’ assets: 

Beta Music Group, Inc.: 

Description of Asset Approximate Value of Asset 

Stock: 100% ownership interests in Get Credit Healthy, 

Inc. 

$0 as the Debtor does not believe 

there is equity in the assets of Get 

Credit Healthy above its debts. 

Bank Account: Bank of America $191.39 

Net Operating Losses 2019: $802,497 

2020: unknown 

Get Credit Healthy, Inc.: 

Description of Asset Approximate 

Value of Asset 

Bank Account(s): Bank of America 

Popular Bank 

$5,289.96 as of 

3/5/21 

$233.24 

Accounts Receivable: $53,255.00 

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 4 of 8
Trademark(s): “getcredithealthy we make it easy” unknown 

License Agreements with various not for profits unknown 

Websites: getcredithealthy.com; gchuniversity.com; gch360.com Unknown 

Software used by Get Credit Healthy, Inc. in its business operations Unknown 

10. List of all insurance policies, the property covered under the policy, the name of the insurer, 

the policy number, amount of coverage, whether the premium is current, the date the next 

premium is due and date the policy expires: 

Beta Music Group, Inc.: NONE (has no independent operations) 

Get Credit Healthy, Inc.:

Insurer & Policy # Property Covered Amount of 

Coverage 

Premium 

current? 

Date premium 

due/ 

Expiration 

Travelers Indemnity 

Company of America 

Policy #8L669364 

Workers 

Compensation and 

Employers 

Liability 

Bodily injury by 

accident: $100,000 

each accident 

Bodily injury by 

disease: $500,000 

Policy limit 

Bodily injury by 

disease: $100,000 

Each employee

Yes 

02-01-21 to 02-

01-22 

Evanston Insurance 

Company 

Policy 

#MKLV3PEO001375 

Professional 

Liability: 

IT professionals 

$1,000,000 each 

claim and 

$1,000,000 in 

aggregate

Yes 

9/26/20 to 9/26/21 

 TCPA Violation $25,000 

 FCRA Violation $25,000 

 Sexual Injury $10,000 

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 5 of 8
 Third Party 

Discrimination

$25,000 

 Disciplinary 

Proceeding

$25,000 per day 

maximum

 Loss of Earnings 

and Expense 

Reimbursement

$10,000/$25,000 

per day maximum 

 Pre-Claim 

Assistance 

Expenses 

$5,000 per day 

maximum 

 Public Relations 

Expenses

$5,000 per day 

maximum

 Subpoena and 

Record Request 

Assistance

$5,000 per day 

maximum 

 Data Breach 

Network and 

Information 

Security and Media 

Injury

$1,000,000 each 

claim/aggregate 

 Media Injury 

Liability 

Loss of Earnings 

and Expense 

Reimbursement:

$1,000,000 each 

claim/aggregate 

$5,000 per day 

maximum 

11. Number of employees and amounts of wages owed as of petition date: 

Beta Music Group, Inc.: 

Number of Employees Wages Owed 

2 $161,900.00 

Get Credit Healthy, Inc.: 

Number of Employees Wages Owed 

5 $0.00

 

Case 21-12199-SMG Doc 14 Filed 03/08/21 Page 6 of 8
12. Status of debtor's payroll and sales tax obligations, if applicable. This does not eliminate 

the obligation of chapter 11 debtors (other than individuals not engaged in business) to 

provide the more detailed payroll tax information required by Local Rule 2081-1(A): 

Payroll tax obligations in the amount of $968.63 incurred as of Petition Date (due 

post-petition – proposed to be paid when due in ordinary course, i.e., March 19, 2021). 

Debtors are not subject to sales tax. 

13. Anticipated emergency relief to be requested within 14 days from the petition date: 

a. Applications to employ counsel for the Debtors;

b. Motion for Authority to Use Cash Collateral;

c. Debtors’ Motion For Entry Of (1) An Order Approving (A) Bidding Procedures, 

(B) Assumption Procedures, (C) The Form And Manner Of Notices, (D) Sale 

Agreements With Stalking Horse Bidder, And (E) Scheduling An Auction, A Sale 

Hearing, And Establishing Dates And Deadlines Related Thereto; and (2) An Order 

(A) Authorizing The Sale Of Substantially All Of The Debtors’ Assets, Free And 

Clear Of All Liens, Claims, And Encumbrances, (B) Granting The Purchaser The 

Protections Afforded To A Good Faith Purchaser, And (C) Granting Related Relief 

[Signature Page Follows] 

 

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