Chapter 13

Harnessing Chapter 13 Cash Flows

We identified an opportunity in Chapter 13 bankruptcy receivables, a specialized asset class offering consistent returns with significant downside protection. These court-supervised payment plans generate predictable cash flows while market inefficiencies allow sophisticated investors to purchase them at attractive discounts.

Our solution leveraged an exclusive partnership with LCI, an experienced servicer with two decades of Chapter 13 expertise. This strategic relationship created an ideal division of responsibilities: LCI managed origination and servicing while avoiding balance sheet exposure, and we provided the capital to fund acquisitions. This arrangement ensured a steady pipeline of opportunities evaluated by industry specialists.

The investment proved both scalable and repeatable due to the inherently structured nature of Chapter 13 payment patterns and our data-driven underwriting approach. By combining our funding capabilities with LCI's specialized expertise, we established a competitive advantage in a niche market, creating a reliable investment vehicle with consistent cash flow and strong risk-adjusted returns.