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Friday, Apr 17, 2026

Subprime Lender Asks for Bankruptcy Extension

Bankrupt subprime lender People’s Choice Home Loan Inc. is looking to file a plan of liquidation by the end of March, the Irvine-based company said in court filings this week.

In a filing Tuesday with U.S. Bankruptcy Court in Santa Ana, the company said it needed another two months to finalize a liquidation plan, and asked the court to extend its exclusive rights to do so.

People’s Choice also wants the court to extend until the end of May the time it has to solicit creditor support for a plan.

If approved by the bankruptcy court, it would be the third extension People’s Choice has received to file a plan of liquidation. A hearing on the matter isn’t expected until early March.

People’s Choice filed for Chapter 11 protection in March 2007, one of the larger local subprime lenders to file for bankruptcy. Subsequent asset sales approved by the court have brought in about $45 million for creditors.

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Mark Mueller
Mark Mueller
Mark is the former Editor-in-Chief and current Community Editor of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.

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