Quick Answer: A disability discrimination lawsuit was filed against United Debt Settlement, LLC on January 21, 2026 in U.S. District Court for the Southern District of New York. The complaint alleges the company fired a top-performing Team Lead after she requested a disability accommodation for hybrid work. This is a legal filing—not a verdict.
Important: A lawsuit filing contains allegations—claims that have not been proven in court. United Debt Settlement has not been found liable for any wrongdoing. This article summarizes the complaint for educational purposes.
Case Information
- Court: U.S. 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. The filing alleges she was promoted to Team Lead in July 2024.
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The complaint states that the plaintiff suffers from scoliosis, L4-L5 disc protrusion, and right foraminal narrowing, which causes severe lower back and sciatic nerve pain radiating down both legs. According to the filing, flare-ups can last days or weeks and make it difficult to sit or stand for extended periods.
The plaintiff lived in Stamford, Connecticut, while the company’s office is located in Midtown Manhattan—a commute the complaint describes as taking up to two hours each way. According to the filing, beginning in October 2022, she worked under a disability accommodation that allowed a hybrid schedule with 2-3 days working from home.
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The Policy Change
According to the complaint, in September 2023, the company hired a new Sales Manager, Narkis Dinavitser. The filing alleges that in January 2025, Dinavitser announced that remote agents and Team Leads would be terminated and hybrid work would no longer be allowed.
The complaint alleges the plaintiff was required to resubmit disability accommodation paperwork and medical documentation. According to the filing, she was approved for two remote work days on February 6, 2025.
The Termination
According to the complaint, on October 29, 2025, while working from home under her approved accommodation, the plaintiff’s access to all work computer systems was deactivated. The filing alleges she then received a phone call from Dinavitser and HR employee Esther Manashirova informing her she was being terminated immediately.
The complaint quotes Dinavitser as saying:
“Due to the fact that we’re downsizing and the company has to make cuts, unfortunately, we’re letting go of a few managers, not just you. You’re a great agent, but this is a company decision.”
According to the filing, the plaintiff questioned this rationale, noting she had just heard about a new Team Lead being promoted that same month and that she consistently ranked among the company’s top performers—in the top 17 out of more than 50 agents in deals signed per hour, with one of the highest clear rates in the entire company.
The complaint alleges that when she asked if she was being fired because of her disability accommodation, Dinavitser denied it and claimed it was due to her performance—despite her documented strong metrics.
What the Complaint Alleges
The lawsuit brings two counts:
Count I: NYSHRL Violation
- Disability discrimination under New York State Human Rights Law
- Alleges termination was because of disability and need for accommodation
Count II: NYCHRL Violation
- Disability discrimination under New York City Human Rights Law
- Seeks punitive damages under NYC Admin Code § 8-502
The complaint seeks at least $1,000,000 in damages for pain and suffering, plus back pay, front pay, punitive damages, and attorneys’ fees.
Who Is United Debt Settlement?
According to the complaint, United Debt Settlement, LLC is a domestic limited liability company organized under New York law. The filing states the company offers debt settlement, debt consolidation, and other forms of debt relief services. The company’s registered address is listed as 187 Wolf Road, Suite 101, Albany, New York.
Before You Sign Anything: If you’re considering hiring any debt relief company, run their contract through the Contract Decoder first. It’s free—and it’s your last chance to spot red flags before you commit.
How to Follow This Case
You can track this case and read all court filings through PACER:
- Go to pacer.uscourts.gov
- Create a free account (required)
- Search for Case Number:
1:26-cv-00542 - Select 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 lawsuit, not a consumer protection case. It involves allegations about how the company treated an employee, not how it treats customers. Current customers should not expect any immediate impact on their services.
Is United Debt Settlement a legitimate company?
This lawsuit contains employment-related allegations that have not been proven in court. Employment practices and consumer services are different aspects of a business. I recommend researching any debt relief company thoroughly before enrolling.
What is disability discrimination in employment?
Under federal and state laws, employers generally must 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 take?
Federal employment lawsuits typically take 1-3 years to resolve. I’ll update this post as significant developments occur.
Contact United Debt Settlement Directly
If you have questions about this lawsuit or are a current customer of United Debt Settlement, I encourage you to contact them directly rather than jump to conclusions based on allegations alone.
A Note to United Debt Settlement: I believe in fair coverage. If you would like to provide a statement about this lawsuit for my readers, please contact me. I will add your response to this article so readers can hear your perspective.
TL;DR: United Debt Settlement faces a disability discrimination lawsuit alleging the company fired a top-performing Team Lead after she requested accommodation for hybrid work due to a back condition. This is a complaint filing—allegations, not a verdict. Use the Contract Decoder before signing with any debt relief company.
(Source: U.S. District Court, Southern District of New York, Case No. 1:26-cv-00542-DEH-OTW)
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