Voxtur, one of the largest proponents and providers of attorney opinion letters (AOLs), has filed a Chapter 15 bankruptcy petition in Delaware. This comes after the Canadian firm already committed to a restructuring plan in Ontario.
In the U.S. bankruptcy filing, which covers Voxtur and dozens of its affiliates in Canada and the U.S., the firm asks the court to recognize its Canadian restructuring plan. Under Canadian bankruptcy laws, all creditor actions are frozen while a company attempts to work through its restructuring plan.
The American Land Title Association (ALTA) is celebrating the news, claiming that it reinforces its warning that AOLs are a “fragile and inferior” alternative to title insurance and that the letters are “inferior products (that) don’t reduce risk.”
“For lenders who adopted AOL programs, the filing raises immediate questions about continuity, liability, and counterparty risk,” ALTA wrote in a press release about the news. “For regulators and policymakers, it serves as a cautionary example of what happens when consumer protection is traded for short-term cost savings.”
According to Voxtur’s filing, as of March 31, 2025, the company had approximately $44.5 million in assets and liabilities of $77.7 million. Voxtur recorded operating losses of $54.3 million in 2023 and $73.6 million in 2024.
The filing also showed multiple lawsuits filed against Voxtur entities and former executives, along with other disputes with lenders and investors.
In ALTA’s view, “the breadth of litigation underscores the operational and financial strain facing the company prior to its insolvency filing.”
In addition to the lawsuits and financial losses, Voxtur’s creditor matrix lists hundreds of creditors — including national title insurers, real estate data providers, software vendors, financial institutions and professional services firms.