I Don’t Want to File Bankruptcy or Have My Wages Garnished. – Deanna


“Dear Steve,

I also am having many issues with Allegro. I have stopped my payments to them and am working with my 2 creditors on my own. One creditor will lower my total due by $2,000, but I have to pay 3 payments of 2700.00 and I cannot do this. I do not want to declare bankruptcy and want to pay my debts. If I make a lower payment than the creditor wants, they can garnish wages and/or put a lien on my house. I cannot refinance at this time due to my low credit score due to late payments caused by Allegro. Should I see a credit counselor, or do you have any suggestions for me? I appreciate any advice you can offer, I’m stressed and just want to move forward. Thank-you for all the info on Allegro, I had no idea they were in so much trouble untill I couldn’t call or get a response and came upon your site. Thank-you again!



Dear Deanna,

For those unfamiliar with the Allegro Law debt settlement company that was taken over by a court appointed receiver, here is the background article.

i think taking bankruptcy off the table as a possible solution is a mistake. While you don’t want to go bankrupt, you have no other legal recourse to prevent a wage garnishment or a possible lien if you are found guilty by the court of not complying with your debt repayment contract.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Your creditors could care less that you are a victim of a debt settlement company. In fact, it really isn’t their problem at all. It was not their choice for you to seek the services of a company that made promises for you to repay less than what you owed. The creditor wants it all, not part. And therein lies part of the reason why debt settlement companies fall under scrutiny, the promises they make are incomplete or sometimes illegal.

At this point, unless you can come to a mutually agreeable arrangement with your creditor that you can meet, you may be sued and if sued, you will lose just as a matter of law. You made a promise to pay and you are not paying it.

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If you seriously want to move forward you are going to have to find a local bankruptcy attorney you like, go and sit down with them face-to-face, discuss your situation and make plans to move forward with bankruptcy. Without bankruptcy you will be dragging this debt situation with you for years and years and that, quite frankly, is not moving forward.

Don’t forget, that even if you go bankrupt to get the protections afforded to you under the law, there is nothing that says you can’t repay your debts latter for your own moral reasons.

Please update me on your progress by

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

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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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