(Bloomberg) -- Life Partners Holdings Inc., which buys rights to life insurance death benefits and sells them to investors, filed for bankruptcy protection as it seeks to avoid legal claims including a $46 million judgment against it and its chief executive officer.

A subsidiary, Life Partners Inc., will continue to operate, Waco, Texas-based Life Partners said today in a statement distributed by Business Wire. The filing will also help the company avoid a Securities and Exchange Commission move to appoint a receiver, which could lead to a liquidation and make an appeal of the judgment impossible, the company said.

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