Life Partners Holdings, Inc. (Nasdaq GS: LPHI), parent company of Life Partners, Inc., today announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas (the "Bankruptcy Court") on January 20, 2015. The Company will continue to operate its business as "debtor-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Its primary operating subsidiary, Life Partners, Inc., will continue to operate as a life settlement provider. In connection with the Chapter 11 case, Life Partners Holdings has also filed for the appointment of a Chief Restructuring Officer who will oversee the implementation of the Company's plan for reorganization. The Company elected to seek protection under Chapter 11 while it pursues an appeal of a $46 million judgment against the Company and two of its executive officers in favor of the Securities and Exchange Commission as previously disclosed in the Company's latest quarterly filing with the Commission. The Securities and Exchange Commission had filed a motion with the Federal trial court to appoint a receiver for the Company. Faced with this possibility and having received no other protection requested from the Federal trial court, the Company elected to seek protection under Chapter 11 in order to avoid the appointment of a receiver which could have liquidated the Company and prevented the effective prosecution of the appeal. In connection with the bankruptcy filing, the Company is seeking customary authority from the Bankruptcy Court that will enable it to continue to operate and for its subsidiaries to continue to serve its clients. As of January 20, 2015 the Company and its subsidiaries had approximately $18.9 million in assets, including approximately $2.9 million of cash and cash equivalents and approximately $352,000 of certificates of deposit.