Costa Mesa-based debt settlement services company Morgan Drexen Inc. has filed for bankruptcy.
The firm, which provides administrative support for attorneys, on Thursday filed a Chapter 7 bankruptcy petition with the U.S. Bankruptcy Court in the Central District of California in Santa Ana.
The filing indicated the company had between $1 million and $10 million in assets and between 1,000 and 5,000 creditors. It said Morgan Drexen “estimates that funds will be available for distribution to unsecured creditors.”
The bankruptcy filing preceded a ruling Friday by a federal appeals court that rejected Morgan Drexen’s challenge to the Consumer Financial Protection Bureau, bringing a default judgment to a case that had been ongoing for about two years.
Morgan Drexen filed a complaint against the CFPB in July 2013, claiming that part of the Dodd-Frank act behind the creation of the CFPB was unconstitutional.
