Allegro Law Receivership Frozen by Bankruptcy Court. All Client Accounts are Closed.

I just got off the phone with the former Official Receiver of Allegro Law, Louis Colley. He broke some very unfortunate news to me regarding Allegro Law and how this impacts ALL Allegro Law clients.

Allegro Law clients were broken up into two camps. One was the debt settlement camp and one was the debt management camp. Debt settlement clients were still having their accounts drafted and creditor paid each month while the receivership was proceeding with an orderly shutdown of Allegro Law. As of Friday, April 2, 2010 that stopped cold turkey.

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What appears to have happened is that Andy Nelms filed personal bankruptcy and listed Allegro as a personal asset. Because of that the bankruptcy court had no choice other than to take over full control of his assets including Allegro and close it down.

This is really bad news for all past and current Allegro clients and appears to clearly be the result of actions of Andy Nelms, the attorney that owned Allegro Law.

What this means is that debt settlement consumers that would have received funds back from the seized company will now receive less back as business claims from marketers of Allegro Law will be added back into the pot that will divide available funds.

Effective immediately AmeriCorp is going to stop servicing clients according to Mr. Colley so this will leave all remaining clients with a tie to Allegro Law left out in the frigid cold with no light, no rope, and no hope.

If you were an Allegro Law debt management client I suggest that you immediately contact this credit counseling group that has experience in an orderly transition from Allegro Law to their debt management program. If you don’t get your account moved immediately it can result in the creditor dropping you from the debt management program and all the money you’ve paid up to date will be most likely wasted since you will wind back up in collections and many will decide to go ahead with bankruptcy instead.

If you are a debt settlement client and have been waiting for a refund of your money held by the court, it is very unclear what percentage of money you will get back, or when.

See also  We Just Signed Up With the Allegro Law Debt Settlement Company. - Leslie

I’m so sorry to report this news. This mess occurred as result of legal rules rather than the wishes of the receiver and Attorney General of Alabama.

Damon Day - Pro Debt Coach

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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.
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