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Can I Switch to Debt Settlement Services With You? – Nona

Nona

“Dear Steve,

I started debt settlement program with allegro law firm in jan 09m like many others, icannot get thru on phone, faxes are ignored. 3 weeks ago I requested a statement of my account, never received. Can I legally stop auto withdrawal from checking account without becoming “fair game” to creditors? I will be filing complaints with AG’s in NY, AL, and WI (where I live) this week. Is Allegro legally responsible to refund all or part of my money once I have demanded this? Can I then switch to a different debt settlement agency, such as with you, Steve?

Nona”

Dear Nona,

You can legally cancel the debt settlement program you are in with Allegro Law, they certainly are having their share of problem issues.

If you read the comments on that past Allegro post you will find information about how to cancel.

Once you cancel it will stop the deductions from your account but it will not return the money, if any, in your escrow account with the company. Most of the initial year of payments was taken as fees before any service was provided. Even funds that were actually saved in escrow will not be returned until the court releases them and fees for the receiver are deducted. The release process may take a year or more.

For many, bankruptcy becomes the logical next step since people will be without money, time or other solutions.

I appreciate your desire to switch to debt settlement services that I provide but I don’t provide any. In fact these days I provide no hands-on services for individuals and instead concentrate on answering questions publicly so I can help as many people as possible by sharing my answerers and experience with as many people as possible so many can learn from the situations.

When you withdraw from the Allegro program you should expect that creditors will begin to contact you again. Without payment or bankruptcy, the debt still exists and needs to be addressed.

READ  I've Been on a Debt Management Plan with Allegro Law and Need Some Answers. - Dustin

I think you should follow all channels of complaint to express your displeasure with this situation in hopes that it creates change that prevents people from falling victim to similar situations in the future.

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




About the author

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.

6 Comments

  • My husband had an account with Allegro. How do I know if it was a debt settlement or debt managment plan and what exactly are our options? Who do we need to contact? We only had 6 more payments until it was suppose to be complete!

      • Yes I believe so… as soon as I get home I am going to start contacting them to make sure. We recieved some letters from the creditors about a year ago and ccontacted allegro at that time. They told us that it was “normal” and to disreguard them… I see in hind sight that was not the best move on our part, however we stopped receiving the letters, so?????

        • Traci,

          Calls your creditors and ask them what the current status of your accounts is. They won’t bite. If they were getting monthly payments, they won’t now since Allegro went bankrupt. You’ll have to take over for the last six payments.

          Steve

  • Have got myself involved with the rotton crooks of Allegro Law. In debt settlement program since Jan 09. Now with the Allegro disaster and HSBC is sueing me, I feel I should stop Allegro pymts. And file bankruptcy.

    I filed chapter 7 in early Dec 2002. Discharged of debts in March 2003. Am I eligible to file bankriptcy now? If not, how long is the waiting period? Thanks for all your help Steve.

    • Nona,

      It would be prudent to start finding a local bankruptcy attorney you want to work with on this. You can start that process now and prepare for your upcoming bankruptcy filing. The timing can be worked out and once you retain the bankruptcy attorney you can tell collectors you are represented by an attorney and they must direct all future communication to the attorney. If you are sued in the meantime, no worries, it will be neutralized by the upcoming bankruptcy.

      Steve

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