A debt collector in another state has filed for bankruptcy. The bankruptcy filing took place on a recent Sunday. When a company in the state of Massachusetts cannot keep up with its liabilities due to economic reasons, for example, it may find Chapter 11 bankruptcy protection to offer the financial relief it needs.
The debt collector that has filed for bankruptcy entered into an agreement with a holdings company that acquires, manages and services consumer debt portfolios. The latter will therefore assume ownership of the debt collector's asset portfolio. The holdings company has agreed to invest more than $400 million in this process.