Keith Nelms, Owner of Allegro Law Debt Settlement Fame, Goes Bankrupt With $28 in His Pocket

I just took a look at the bankruptcy filing for Keith Nelms, the attorney owner of the Debt Settlement company, Allegro Law.

Some of the creditors he listed in his filing included: Jennifer Nelms, Calude Nelms, Jr., State of Alabama Consumer Affairs Division, Internal Revenue Service, Alabama Department of Revenue, some student loans, Chase Bank, Household Finance, and the approximately 17,000 clients that were screwed by Allegro Law.

Keith Nelms Home
Picture of home address Nelms listed.

According to the filing Nelms had $9,669,043 in assets and $9,781,877 in liabilities at the time of his filing. He stated under oath that he only had $28 cash on hand, $5,000 in home furnishings, $2,000 in clothing and owned an interest in Allegro Financial Services, Allegro Law, Anderson Nelms & Associates, and Corbett Enterprises.

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Our high flying debt settlement company lawyer said he owned a 2000 Jeep Cherokee (not running), 1994 Ford Bronco, 1996 Ford Bronco and a 2007 Chevrolet Suburban which he owned with his father. Oh yes, an 18′ Key Largo boat.

Of the claims against him he owed Ronald Francis for a judgment against Nelms, he owed Alabama taxes for 2006 – 2009, IRS for taxes 2006 – 2009, had a defaulted student loan, owed Chase Bank for consumer protection law violations, had a breach of a lease and a wage garnishment against him.

Sadly he listed that he has a son, 5, and a daughter, 8. His occupation was ‘unemployed.’

Keith’s bankruptcy filing is a classic example of a debt relief company gone bad. While his company, Allegro Law, was being held out as a “place to go for debt settlement help” Nelms was in fact in debt on taxes, judgments, wage garnishments and lawsuits.

I feel most sorry for his kids, who will one day have to be told how badly, in my opinion, Nelms wound up screwing the 17,000 clients of Allegro law. Many of those people will subsequently have to file bankruptcy and many will lose homes and property as well. Nelms’ salvation here will be if he can come clean about his activities and work to help, instead of hurt, consumers in the future.

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If you want to read the bankruptcy filing, here it is.

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