CashCall Files Chapter 11 With $402M in Judgments and Under $10M in Assets

CashCall, Inc., the La Jolla, California subprime lender, filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of California on July 20, 2026, after two courts affirmed more than $400 million in judgments against a company that now reports under $10 million in assets.

Why it matters: Litigation can sink a solvent-looking counterparty, so file your claim and confirm your coverage before the bar date.

Two lost appeals put $402 million on the books

CashCall ran out of appeals in two long-running consumer cases. It did not run out of a viable business.

• In De la Torre v. CashCall, the California Court of Appeal affirmed a $245.5 million restitution judgment on February 27, 2026, covering a certified class of 119,844 borrowers charged unconscionable rates on $2,600 loans.
• In the CFPB case, the U.S. Supreme Court declined CashCall’s final appeal on March 2, 2026, leaving a $157 million judgment over its Western Sky tribal-lending model in place.
• CashCall had already wound down, halting most lending by 2021, making just 21 loans in March 2026, and terminating its remaining employees on June 30, 2026.

Under $10 million in assets against nine-figure claims

The petition shows how little is left for the unsecured pool that trade creditors share.

• CashCall reports $1 million to $10 million in assets against $100 million to $500 million in liabilities.
• Roughly $5 million in trade debt and professional fees sits in the same unsecured class as the judgments and about $45 million in additional asserted litigation claims.
• A pending fraudulent-transfer action targets an October 2021 distribution to sole shareholder J. Paul Reddam, and the court denied CashCall’s summary-judgment motion on July 14, 2026.

What to do now

Unsecured vendors and professional-services firms holding CashCall exposure have a narrow set of recovery options and a short calendar.

1. File a proof of claim before the bar date and calendar every court deadline in the case, number 26-03102.
2. Confirm whether your exposure was insurable, because an insured buyer’s insolvency can trigger a claim regardless of what caused it, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
3. Reassess counterparties whose largest liabilities are contingent, such as pending litigation or regulatory judgments, rather than operating debt on the balance sheet.
4. Contact Securitas Global Risk Solutions to review how unsecured creditors can protect receivables against a buyer’s insolvency.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.