Mailed payments from delinquent debtors are still being routed to Mann Bracken — months after the Rockville debt-collection law firm collapsed and shut its doors.

Figuring out who should get the money, garnisheed from the wages of people across the country, is one of the challenges facing the receiver appointed to oversee the firm's unwinding. Mann Bracken has opted to be placed into receivership by the Montgomery County Circuit Court, a seldom-used alternative to bankruptcy.

Six months after the firm unraveled, Maryland's courts are still trying to sort out Mann Bracken's cases against debtors, claims against the firm are multiplying and more lawsuits are in the works. The firm imploded in January after the spinoff company handling its support work toppled into Chapter 7 bankruptcy, cutting the law firm off from the computerized files it needed to function.

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, including attorneys, process servers and consumers with lawsuits against Mann Bracken. All believe the firm owes them money.

Rose also said she is considering lawsuits against "parties we believe responsible for the condition Mann Bracken found itself in," which could ultimately mean more money for claimants. She didn't specify whom the firm might sue.

"The claims are mounting," said Towson consumer attorney Cory L. Zajdel, who is representing a Howard County woman in a suit against Mann Bracken for allegedly unfair debt-collection practices.

Consumers whose wages are still being docked should file paperwork to quash the garnishment with the court that handled the case, Zajdel said. Maryland's district courts have the necessary forms, he said. His concern is that money going to the defunct Mann Bracken might not make it to the creditors.

"I think people might wind up paying twice," he said.

Mann Bracken has managed to pry its computer records from the bankruptcy proceedings of Axiant, which had handled that side of the collections work. Rose said she expects to be able to determine in most cases which creditors are owed money, but some of the garnishments won't be easy to forward.

"Sometimes I get checks made out to strange things," Rose said. "I got a check once made out to 'Whomever.' "

Mann Bracken was thought to have tens of thousands of open debt-collection lawsuits against Maryland consumers when it alerted the state's district court system in January that it was shutting down, prompting the chief judge to order the firm's cases be tossed out.

The courts are still dismissing the suits — and officials are still uncertain about the total number.

jamie.smith.hopkins@baltsun.com

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