What happens if a Loan Originator goes bankrupt?

Debitum would combine all active Assignment agreements and make a claim towards the loan originator (for the bankruptcy administrator) that should end up with a decision that particular claim rights have been solved and the revenues from those rights should in first place cover users cash flow and only the remainders could be used for general debt of the Loan originator.

If there was a buyback obligation, the user would recover the funds on his or her balance. Then, in addition, Debitum would fill another claim against a Loan originator based on our mutual partnership agreement requesting the return of funds used for the buyback. In most cases there is an additional security (or security agreement) from the Loan originator towards Debitum for the buyback obligation- Debitum would also start the process of recovering funds using that security (or security agreement).