Walter Investment Management Corp. has filed for bankruptcy as expected. The company hopes to wipe out nearly $1 billion in outstanding debt.

On Thursday, the Fort Washington, Pennsylvania-based firm disclosed that it filed a voluntary chapter 11 petition in U.S. Bankruptcy Court for the Southern District of New York.

Walter had previously revealed in October that it had reached agreements with creditors to file bankruptcy and cut its outstanding corporate debt by $700 million.

Source: Mortgage Daily