Bankruptcy's Big Winners: The ARM Industry

Sure, the new bankruptcy laws are tough on some – consumers, for instance, who had it easier last year when a bankruptcy filing was akin to a get-out-of-debt-free card. But, according to TheStreet.com, the new, tougher laws are proving advantageous to business in the accounts receivable sector. They now have a better class of consumer debt to buy.

According to Audrey Snell, an analyst with ThinkEquity Partners, “Very little debt is discharged. It not only protects the creditors who own the debt, but it also enables [them] to collect more and collect better over time. It has enabled the emergence of a new asset class for companies like Asta Funding and Portfolio Recovery Associates."

Most industry insiders agree: the new law has created more receivables for sale.