Mann Bracken, a debt collection law firm collapsed and shut its doors after a spinoff company handling its support work toppled into Chapter 7 bankruptcy, cutting the law firm off from the computerized files it needed to function. After the support firm went into Chapter 7 bankruptcy, Mann Bracken was unable to figure out who should be paid what as debtor’s wages were garnished and proceeds sent to the firm. A matter of fact many debtors wages are still being garnished by the Mann Bracken debt collection firm. And because many of the funds from wage garnishments are not making it to the creditors, Mann Bracken is now facing a slew of lawsuits from creditors and debtors alike. The Mann Bracken debt collection law firm is now in receivership and has been able to recover some of its records. But still it seems to be impossible to figure out who is suppose to receive the money in many of the wage garnishments cases, a matter of fact, the receiver in the Mann Bracken case says that some of the checks are being made out to “Whomever.” However, the courts are hoping to resolve the debt collection nightmare amicably.
Receiver Cheryl E. Rose is negotiating with Mann Bracken’s former clients – credit-card companies, debt buyers and other firms seeking payment on past-due accounts – to keep a percentage of the garnishment money in the receivership account as the law firm’s fee.
That would increase the funds available for the scores of claimants, from attorneys to process servers to consumers with lawsuits against Mann Bracken. All believe the firm owes them money.
Debtors who have wage garnishments by debt collection firm Mann Bracken are being informed to contact the courts and have the wage garnishment orders stopped.