A Florida businessman who made his fortune as a debt counselor during the Great Recession has filed for Chapter 7 bankruptcy. Timothy McCallan, of Melbourne, is listing more than $100 million in liabilities. He was hit with a judgment for $107 million in an Alabama bankruptcy for Allegra Law, a large debt settlement law firm that was shut down for massive fraud.
Court investigators in the Allegro case have been pursuing McCallan, because his companies, Americorp and Seton Inc., provided record-keeping and data services to Allegro.
Now the businessman is telling a Florida court he needs protection from that claim among others in his bankruptcy filing. An Alabama bankruptcy judge had McCallan arrested and jailed for a time, and declared that McCallan had committed a fraud on the court.
“Thousands of customers signed up for debt settlement services offered by McCallan and paid him more than $100,000,000. Almost none of the money was paid to creditors of the customers as promised by McCallan,” U.S. Bankruptcy Judge William R. Sawyer wrote in an opinion entered in February.
McCallan, who owns a $1.5 million home on the Florida coast, has been ordered to turn over records related to the Allegro Firm. Most recently, McCallan told the court he had been delayed because of damage to his home during Hurricane Matthew, which side-swiped the Florida coastline in early October. But investigators in the Allegro case later learned McCallan’s home suffered no damage.
Click here to read more on this story.
If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Related Resources: