Debt settlement United sued for firing top performer after disability

Case information

• Court: United States District Court, Southern District of New York
• Plaintiff: Arelis Vargas Jimenez (Former Employee)
• Defendant: United Debt Settlement, LLC
• Claims: Disability Discrimination Under NYSHRL and NYCHRL

The story behind this lawsuit

According to the complaint, plaintiff Arelis Vargas Jimenez began working for United Debt Settlement as a Consumer Sales Agent in August 2022. She was promoted to team leader in July 2024, according to the filing.

The complaint alleges that the plaintiff suffers from scoliosis, protrusion of the L4-L5 intervertebral disc and narrowing of the right foraminal area, causing severe pain in the lower back and sciatic nerve radiating to both legs. According to the filing, flare-ups can last days or weeks and make it difficult to sit or stand for long periods of time.

The plaintiff lived in Stamford, Connecticut, while the company’s office is in Midtown Manhattan — a trip that takes up to two hours round trip, according to the complaint. According to the filing, beginning in October 2022, she worked under a disability facility that allowed for a hybrid schedule with 2-3 days of working from home.

The policy change

According to the complaint, the company hired a new sales manager, Narkis Dinavitser, in September 2023. The filing alleges that Dinavitser announced in January 2025 that remote agents and team leaders would be terminated and that hybrid work would no longer be allowed.

The complaint alleges that the plaintiff was required to resubmit disability accommodation paperwork and medical documentation. She was approved for two days of remote work on February 6, 2025, according to the filing.

The termination

According to the complaint, on October 29, 2025, while working from home at her approved accommodation, the plaintiff’s access to all work computer systems was disabled. According to the filing, she then received a call from Dinavitser and HR employee Esther Manashirova informing her that she was being fired immediately.

The complaint quotes Dinavitser as follows:

“Due to the fact that we are downsizing and the company is having to make cuts, we are unfortunately letting go of some managers, not just you. You are a great agent, but this is a company decision.”

According to the filing, the plaintiff questioned this reasoning, noting that she had just learned that a new team leader was being promoted that same month and that she had consistently ranked among the company’s top performers — in the top 17 of more than 50 agents in hourly deals signed, with one of the highest clear rates in the entire company.

The complaint alleges that when Dinavitser asked if she was being fired because of her disability accommodations, Dinavitser denied it and claimed it was due to her performance – despite her documented strong grades.

What the complaint alleges

The lawsuit raises two points:

The complaint seeks at least $1,000,000 in damages for pain and suffering, plus back pay, disgorgement, punitive damages and attorneys’ fees.

Who is the unified debt settlement?

According to the complaint, United Debt Settlement, LLC is a domestic limited liability company organized under New York law. The filing states that the company offers debt settlement, debt consolidation and other types of debt relief services. The company’s registered address is 187 Wolf Road, Suite 101, Albany, New York.

How to follow this case

You can follow this case and read all court filings via PACER:

1. Go to pacer.uscourts.gov
2. Create a free account (required)
3. Search for case number: 1:26-cv-00542
4. Court: Southern District of New York

PACER charges $0.10/page for documents, but the first $30/quarter is free for most users.

Frequently asked questions

What does this lawsuit mean for United Debt Settlement customers?

This is an employment law case, not a consumer protection case. These are allegations about how the company treated an employee, not how it treats customers. Current customers should not expect an immediate impact on their services.

Is United Debt Settlement a legit company?

This lawsuit contains employment-related allegations that have not been proven in court. Labor practices and consumer services are different aspects of a business. I recommend researching any debt relief company thoroughly before signing up.

What is disability discrimination in the labor market?

Federal and state law generally requires employers to provide reasonable accommodations to employees with disabilities unless doing so would cause undue hardship. Firing an employee because of their disability or need for accommodation may violate these laws.

How long will this case last?

Federal employment lawsuits typically take one to three years to resolve. I will update this post as any significant developments occur.

Contact United Debt Settlement directly

If you have any questions about this lawsuit or are a current United Debt Settlement customer, I encourage you to contact them directly rather than jumping to conclusions based on accusations alone.

(Source: US District Court, Southern District of New York, Case No. 1:26-cv-00542-DEH-OTW)