On October 3, 2012 Laurie B. Williams, a Kansas Chapter 13 bankruptcy trustee, filed suit against Legal Helpers Debt Resolution, Macey Aleman Hyslip & Searns, Armored Debt Center, Global Client Solutions, Meracord, and NoteWorld Servicing Center to recover money paid by the consumer to the companies prior to them filing bankruptcy.
The complaint makes the following statements and allegations:
Defendants represented to Debtors it was their opinion debt settlement was a viable alternative option to bankruptcy for Debtors.
Debtors relied on Defendants’ representations that it was Defendants belief debt settlement was a viable alternative option to bankruptcy for Debtors.
On August 11, 2010, Debtor Faik S. Tasan wrote LHDR a/k/a MAHS and terminated Debtors’ contract with Defendants.
On information and belief, the Defendants provided no services, debt resolution or otherwise, to Debtors in exchange for the $14,195.91 received and received no benefit from contracting with Defendants for debt settlement services.
On August 17, 2010, Debtors bankruptcy counsel, Mark Lazzo, sent a demand letter to LHDR a/k/a MAHS demanding return of sums due and owing to Debtors under the contract.
On information and belief, no sums have ever been returned to Debtors by LHDR, MAHS, ADC, GCS and/or Meracord.
On October 4, 2010, Debtors filed a voluntary petition for relief under Chapter 13 of the United States Bankruptcy Code in the District of Kansas, case 10-1 3404.
All sums paid to LHDR, MAHS, ADC, GCS and/or Meracord were paid within the two (2) year period immediately preceding the date of Debtors’ bankruptcy filing.
The sum of $1,498.22 was paid to LHDR, MAHS, ADC, GCS and/or Meracord within the ninety (90) day period immediately preceding the date of Debtors’ bankruptcy filing.
LHDR, MAHS, ADC, GCS and/or Meracord are entities in possession, custody or control of $14,195.91, which is property the Trustee may use, sell or lease under 11 U.S.C. g 363 and thus the Trustee is entitled to an accounting of where the $14,195.91 is being held and by whom.
Each transfer making up the total sum of $14,195.91 paid to LHDR, MAHS, ADC, GCS and/or Meracord by Debtors was a voluntary transfer of an interest of the debtor in property as contemplated by 11 U.S.C. g 548.
The transfers were made within the two (2) year period preceding the date of the filing of Debtors’ Chapter 13 bankruptcy petition.
On information and belief, Debtors received less than a reasonably equivalent value in exchange for the transfers made to LHDR, MAHS, ADC, GCS and/or Meracord.
On information and belief, Debtors were insolvent on the date such transfers were made or became insolvent as a result of such transfers to LHDR, MAHS, ADC, GCS and/or Meracord.
Under Kansas law, companies engaged in debt settlement must be licensed and registered with the Office of the State Banking Commissioner. K.S.A. g 50-1118.
LHDR, MAHS, ADC, GCS and/or Meracord are engaged in the business of providing debt settlement services as contemplated by K.S.A. g 50-1118 and are required to be licensed and registered with the Office of the State Banking Commissioner.
None of the Defendants are licensed or registered with the Office of the State Banking Commissioner and therefore they are not legally authorized to provide debt settlement services in Kansas to Kansas residents.
You can read the full complaint, here.
Kansas Chapter 13 Trustee Clawing Back Money From LHDR, Armored Debt Center and Meracord by Steve Rhode
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