Q. What is the difference between the Richard L. Bruhn and the Dick Bruhn, Inc. bankruptcy cases?
The Richard L. Bruhn case (case number 07-51826) is an individual bankruptcy filed by Mr. Bruhn with his daughter, Donna Bruhn, acting as conservator for his personal estate. McNutt Law Group LLP represents the Committee of Unsecured Creditors in this individual bankruptcy.
The Dick Bruhn, Inc. case (case number 07-51338) ("DBI") is a corporate bankruptcy filed by the company known as Dick Bruhn, Inc. This corporate bankruptcy also includes the other companies affiliated with Dick Bruhn, Inc.: Dick Bruhn A Man's Store, M'Lady Bruhn, Selix Formalwear, and Butlers Uniforms. Murray & Murray represents the Committee of Unsecured Creditors in this corporate bankruptcy.
All of the noteholders in the Dick Bruhn, Inc. "Investment Note Program" have claims in the DBI case. Additionally, noteholders have claims in the Richard L. Bruhn case. Those claims are based on the fact that Mr. Bruhn has guaranteed all of the notes.
Q. Do I need to file a proof of claim in both cases?
Yes, you should file a proof of claim in both cases. The deadline for proofs of claim to be received by the Bankruptcy Court in the Richard L. Bruhn matter is Tuesday, October 16, 2007. However, we are asking all creditors in the Richard L. Bruhn bankruptcy case to file their claims as soon as possible so that we will be able to move the case quickly forward towards plan confirmation. In any event, the claims must be RECEIVED by the Court by October 16. Failure to file your claim can significantly impact your rights to recovery in this case.
The deadline for proofs of claim to be received by the Bankruptcy Court in the Dick Bruhn, Inc. matter is Tuesday, September 11, 2007. Claims in the DBI bankruptcy must be RECEIVED by the Court by September 11.
Q. How do I file a proof of claim?
You need to complete a proof of claim stating the amount of money you are owed and the basis for the obligation. If you did not receive a proof of claim from the Bankruptcy Court, you may download a proof of claim form in the Richard L. Bruhn individual case here. Instructions are included on the second page of the form. You can view a sample proof of claim to assist you with completing the proof of claim. You need to sign and date the bottom of the form.
You must file a separate and different proof of claim form in the DBI corporate case. For your convenience, we are providing a blank proof of claim form in the DBI corporate case.
Once you have completed your proof of claim form, please mail it to the Bankruptcy Court at the following address. DO NOT MAIL YOUR PROOF OF CLAIM FORM TO McNUTT LAW GROUP – IT MUST BE MAILED TO THE COURT.
Clerk of the Court
U.S. Bankruptcy Court
Northern District of California
San Jose Division
280 South First Street
San Jose, CA 95113
If you want the Court to return to you a stamped copy of your proof of claim, you must include a photocopy of the completed and signed form along with a self-addressed stamped envelope. The Court will stamp your proof of claim form as filed on the date they receive it and return a copy to you for your records. We cannot take any responsibility for the filing of your proofs of claim; you must personally verify their receipt with the Court.
Q. Do I need to hire an attorney?
McNutt Law Group LLP represents all of the unsecured creditors in the Richard L. Bruhn bankruptcy and will be paid with funds from the bankruptcy estate. We believe that we are able to represent the interests of all of the unsecured creditors in the case and that it is not necessary for you to hire your own individual counsel. However we cannot advise you against hiring your own attorney. If you wish to hire your own counsel, please feel free to do so.
Q. Does McNutt Law Group represent me in both bankruptcies?
No, McNutt Law Group represents the unsecured creditors in the individual Richard L. Bruhn case. Murray & Murray represents the unsecured creditors in the corporate Dick Bruhn, Inc. case.
Q. How do I update my address with the Bankruptcy Court?
If you move or change your mailing address, you should update your address with the Bankruptcy Court by completing and mailing a Change of Address form. Once you complete the form, please mail it to the Bankruptcy Court at the address on the Change of Address Form and send a copy to McNutt Law Group.
Q. I recently received a call from someone wanting to buy my claim. What is a claims trader? Should I sell my claim?
Claims traders buy claims for a portion of their face value against future distributions in a bankruptcy case. They purchase claims at a discount in anticipation that the eventual distribution percentage will be greater than the amount they paid (e.g., buying a claim for 40 cents on the dollar in expectation of a larger distribution for each dollar). Selling your claim would shorten your waiting time for receiving cash. However, claims traders buy based on an expectation that the value of claims will go up. In other words, if a claims trader is offering to pay you 40 cents on the dollar now, that trader believes that the value of the claim will increase above 40 cents.
We believe that by working hard in the initial months of the case we will be able to increase the value of your claim significantly. And while we cannot advise you on whether or not to accept a specific offer from a claims trader, we generally discourage the practice of selling claims early in a case. Some of you, for personal reasons, must sell your claims. If so, we cannot fault you. If you must sell we recommend you bargain hard for as much as the claims traders will give you.
Questions re: Completing the Proof of Claim Form
Q. Line 2: Date Debt was incurred -- Is this the date we invested in the program?
Yes, the debt was incurred at the time that you invested money and received a Promissory Note in return. The date on your Promissory Note should be entered here. If you do not have an exact date, you can enter the month and year or say "on or about." If you have more than one Promissory Note, you may enter multiple dates or the date of the earliest Note.
Q. Line 4: Unsecured Nonpriority Claim -- Is this the original amount invested in the Note program or does this include all interest?
This is the total amount of your claim including all interest. If you are unsure of the amount of interest you are owed, you may enter the unpaid amount of your Note and add the words "plus interest." You are owed interest up to the time the case was filed; You cannot claim interest after the Debtor filed for bankruptcy.
Q. Line 5: Total Amount of Claim at Time Case Was Filed -- What is the date for this figure?
The Richard L. Bruhn individual bankruptcy case was filed on June 15, 2007, so this would be the total amount of your claim as of June 15, 2007.
Q. The Proof of Claim form says to attach an itemized statement of all interest or additional charges. Would that be the last investment statement we received March 31, 2007?
You should attach both a copy of any Notes you have as well as the last investment statement for each of those Notes. You can also calculate interest through the filing date or just say "plus interest."
