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Home > Ask The Get Out of Debt Experts > Novadebt, Garden State Consumer Credit Counseling, Taking Over My Allegro Law Debt. – Anna

Novadebt, Garden State Consumer Credit Counseling, Taking Over My Allegro Law Debt. – Anna

“Dear Steve,

I signed up with Allegro Law earlier in the year. I have been following the comments and I am in the same boat obviously as everyone else. I have stopped sending payments to Allegro because they haven’t paid any of my creditors.

Yesterday, a rep from Allegro called and left a message saying that have not received payments and that I should send them. I don’t understand why. This Nelms guy has been sued and as you mentioned in a comment that the money has been spent. Why would they still ask for my money if they are fraudulent and not paying my creditors?

Also, I have done research about debt settlement and as a resident of NJ, I have found that I can seek help from source like Novadebt because they have a debt adjuster license. I found this info on the NJ Dept of Banking website. So, I don’t understand why I need to send money to Allegro if my creditors do not acknowledge Allegro and if it’s illegal for him to practice outside of AL.

Also, I saw that you mentioned t hat the money is spent, but what about the “so-called” claims process they were setting up and I was under the assumption my money was in escrow because none of it was being sent to my creditors. Also, why wouldn’t I get my money back if it was not being sent to my creditors? This whole mess is ridiculous. Also, I wanted to say thank you for all your advice, it has been helpful.



Dear Anna,

Wow, there are a number of issues here.

If you enrolled with Allegro Law for debt settlement services the reason you won’t get money back is because the initial payments went to pay for front-loaded fees for debt settlement services you did not receive.

Allegro Law is still running a debt management program where monthly payments are sent to creditors, no settlements are made.

NovaDebt, AKA Garden State Credit Counseling, is a different type of company, they don’t do debt settlements, they offer a debt management program. I suggest before you enroll that you understand the success rates of each approach by reading this article.

I could guide you further if I knew what your situation was. Are you able to afford the monthly minimum payments to your creditors?

I’m confused, what solution are you looking for?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Anna

    Dear Steve,

    I signed up with Allegro to help with 5 credit cards with a total outstanding balance of 50,000. In the one year I was with them, they have not have not settled a single account and I have lost 10,000 to Allegro. I tried to call all my creditors and the balance has increased to 60,000 and they told me they cannot do anything for me because they have sold my accounts to collection attorneys/agencies. I’m getting threatening letters saying that they will take legal action if I don’t pay within 30 days. My questions are: What kind of legal action can they take? What can I do in response? Currently, I am unemployed because my company went bankrupt and there is no money coming in (I am not receiving unemployment). Some friends were making payments to Allegro for me. I can’t afford the Novadebt payments because they are asking 1,100 per month. Are you aware of any organizations that will start a minimum payment plan (I can afford up to 550 per month)? Any advice would be greatly appreciated.

    Thank You


    • Steve Rhode


      As far as legal action, they can sue you, win, get a judgment, go for a wage garnishment, etc. Nothing positive will come from it.

      Honestly, the kindest thing your friends can do for you is to pay for a bankruptcy attorney so you can end this debt with bankruptcy. It is also the kindest thing you can do for your friends, otherwise you are taking their money and pouring down a black hole with no bottom.

      I’m very surprised that Novadebt would put you on a debt management plan knowing you do not have any money coming in. A payment plan is not a wise move at this point and in my humble opinion, is unfair to those that care enough to provide support.

      Big hug.


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