American Business Financial Services, Inc. (ABFS), together with its subsidiaries, operates as a financial services organization mainly in the eastern and central portions of the United States, as well as in the state of California. It originates, sells, and services home mortgage loans through its principal direct and indirect subsidiaries. The company was incorporated in 1985 and is based in Philadelphia, Pennsylvania. ABFS and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in January 2005. The company intends to wind down its operations and dispose of its assets through the Chapter 11 plan of liquidation. The bankruptcy court approved the sale of the company's servicing operations to Ocwen Federal Bank FSB for approximately $20 million in April 2005.