July 18th, 2013

On July 18, 2013, in Allegro Law LLC.,

At this time we are still continuing with the process of reviewing filed Proof of Claims and filing Motions to Strike and Reclassify. We are approximately half way through this process. If your claim is subject to a Motion, you will receive notice in the mail. The Trustee will not send status updates through the mail, nor should you receive anything from the Trustee in this case, except as it pertains to your actual claim. All status updates will be made on this website.

As a reminder, we have had many inquires as to how to understand the motions. If you receive a Motion, you will see four columns. In the first column is the creditor’s name that filed the proof of claim along with the claim number. In the second column is the address we have on file for that creditor. In the third column is the amount the creditor requested that they receive on their proof of claim. In the fourth column, and the most important column, is the amount that the creditor’s claim has been reclassified to by our office. On many of the reclassified amounts there are two categories, priority and unsecured. We anticipate all funds classified as priority will be paid to the extent there are sufficient funds in the bankruptcy estate. For those amounts classified as unsecured we anticipate only a percentage will be paid, not the entire amount. We will not know the exact percentage that will be paid until all claims have been reviewed and reclassified.

If the word “strike” is in the fourth column, then we are moving to expunge, or remove, that particular proof of claim based on lack of supporting documentation both from the creditor and in our records. It is important that if we are moving to strike your claim and you have supporting documentation, (bank records, money orders, checks, etc) that you contact our office immediately to provide those documents. Once the time period has run for responses to the motion we will be unable to reinstate your proof of claim. If you have any questions on this process we ask that you please consult with an attorney.

If you have not done so already, please update your mailing address if you have relocated since filing a claim to ensure you receive any notices. Our office cannot process change of addresses. All change of address forms and any responses to a Motion need to be mailed to:

United States Bankruptcy Court Middle District of Alabama
Clerk of the Court
One Church Street
Montgomery, AL 36104.

We do not anticipate a distribution being made to creditors during the calendar year of 2013, and possibly 2014. We understand that this case was opened in 2010; however this is a complex case with thousands of creditors involved. Therefore, this case has been and will be moving slower than a “typical” bankruptcy case. We are striving to make distributions to creditors as soon as possible. Please do not call our office simply to ask when the distributions will be made. As soon as we begin the process of making distributions, we will update this website.  Also, please remember we are not allowed to give legal advice. If you need legal advice please consult an attorney.

We have been informed that a third party company has been contacting creditors attempting to purchase the creditors interest in their claim. We are unaffiliated with the third party company and do not have any information pertaining to that company or their correspondence that has been mailed. If you have any questions about the company or the correspondence you received please call the company directly, their telephone number should be listed on the correspondence you received.