Chaos Continues at Debt Collection Law Firm Now in Receivership
The checks are still coming into Mann Bracken, often from wage garnishments won by the Maryland-based national law firm before it shuttered its doors earlier this year.
But a receiver is still struggling to figure out how the debtor payments should be handled. The Montgomery County Circuit Court dismissed tens of thousands of lawsuits after the firm announced in January that it was closing. Meanwhile, case files weren’t immediately available to the receiver because the spinoff company that was handling litigation support for Mann Bracken went into Chapter 7 bankruptcy, recounts the Baltimore Sun.
Litigation against Mann Bracken is mounting, and attorney Cory Zajdel of Towson, who is representing one plaintiff alleging unfair debt-collection, is concerned that money sent to the law firm might not go to the creditors for whom it is intended.
“I think people might wind up paying twice,” he says.
Earlier coverage:
ABAJournal.com: “Debt Collection Law Firm Abruptly Closes; Thousands of Cases Dismissed”
