“Dear Steve,
We were with Allegro Law for 3 years, and did file the forms with the appropriate people when the scam was uncovered.
We have been waiting several years for our refund from Allegro Law, it has still not been resolved it seems. Have you hopefully an further info on when payments might be. The last update on the site was back in December. Makes a person feel really sad about the criminal justice system and that thieves like that just walk away with a bankruptcy. Sad for everyone….No justice at all.
Rebekah”
Dear Rebekah,
I first wrote about Allegro Law almost four years ago now and sadly the mess continues.
In all of my years in covering the debt world, unfortunately consumers rarely ever win when it decompensates into a massive mess.
The courts move slowly and any refund you may get back will certainly not be the entire amount you are due.
The last update on the case was in December, 2012.
At this time we are continuing with the process of reviewing filed Proof of Claims and filing Motions to Strike and Reclassify. If you are subject to a Motion, you will receive notice in the mail.
We have had many inquires as to how to understand the motions. If you receive a Motion, you will see four columns. In the first column is the creditor’s name that filed the proof of claim along with the claim number. In the second column is the address we have on file for that creditor. In the third column is the amount the creditor requested that they receive on their proof of claim. In the fourth column, and the most important column, is the amount that the creditor’s claim has been reclassified to. On many of the reclassified amounts there are two categories, priority and unsecured. All funds classified as priority will be paid to the extent there are sufficient funds in the bankruptcy estate. For those amounts classified as unsecured only a percentage will be paid, not the entire amount. We will not know the exact percentage that will be paid until all claims have been reviewed and reclassified.
If the word “strike” is in the fourth column, then we are moving to expunge, or remove, that particular proof of claim based on lack of supporting documentation both from the creditor and in our records. It is important that if we are moving to strike your claim and you have supporting documentation, (bank records, money orders, checks, etc) that you contact our office immediately to provide those documents.
If you have not done so already, please update your mailing address if you have relocated since filing a claim to ensure you receive any notices. All change of address forms and any responses to a Motion need to be mailed to:
United States Bankruptcy Court Middle District of Alabama
Clerk of the Court
One Church Street
Montgomery, AL 36104 – Source
Now you understand when I get so frustrated when people leap into a program without being aware of the realities and consequences. The ability for people to recover what they lost on the backside of these events is mostly unlikely.
I logged on to the court and there are 1014 actions on the case and the last was on May 1, 2013.
It looks like, from this document, the bankruptcy trustee is labeling the first $2,600 of any claim as a priority claim and the remainder as an unsecured claim.
All we can do is sit and wait. I wish I had better news.
Please post your responses and follow-up messages to me on this in the comments section below.
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