ARM Companies Well-Represented in Bankruptcy Filings

Of the top 50 creditors named in consumer bankruptcy filings in the first full week of July, 16 were accounts receivable management firms. Combined, collection agencies and debt buyers were named in 20 percent of filings attributed to the top 50 companies.

The data comes from bankruptcy account management firm American InfoSource and covers consumer bankruptcy filings from July 7-13, 2012.

When consumers file for bankruptcy protection, they must list creditors to whom they owe debts. With debt volumes and ARM placements coming off of all-time highs a few years ago, it makes sense that collection agencies and debt buyers would be heavily represented in the filings.