Bankruptcy Services set new records in 2010 with significant increases in both  investment and collections. A substantial portion of PRA’s debt-purchasing  business consists of the acquisition of bankrupt  accounts. The business continues to build on extensive experience managing bankrupt  accounts, leveraging its strong relationships  with bankruptcy trustees and courts, our  experienced bankruptcy staff, and a fully integrated proprietary bankrupt account management system (BMS) to maximize the profitability of Bankruptcy Services. Last  year, the Bankruptcy Services business con- tinued to be a strong growth engine for PRA.  Bankruptcy Services’ investment in purchased  bankrupt accounts totaled $217 million, a  34% increase over the $163 million invested  in 2009, and the business’s cash collections totaled $187 million, a 116% increase. Both  totals were new records for the Company.  Purchases of bankrupt accounts represented  59% of PRA’s total investment in debt last  year, and collections from bankrupt accounts  represented 35% of total cash collections.  Bankrupt accounts that PRA acquires are pri- marily unsecured claims included in Chapter  13 bankruptcy cases. With its recent invest- ments in purchased portfolios, constantly  improving underwriting expertise, and opera- tional efficiency and scale, PRA’s Bankruptcy  Services business is well positioned to pro- duce continued growth in its cash collections  and income contribution. 6 Portfolio Recovery Associates, Inc. — 2010 Annual Report BANKRUPTC Y SERVICES