A billing collections agency in the US that was hacked last year in an incident believed to impact millions of medical patients is now seeking a federal bankruptcy court’s protection from its own creditors.

The American Medical Collection Agency (AMCA) filed for bankruptcy protection in the state of New York last week citing a “cascade of events” stemming from the March 2019 realisation that its systems had been breached, as well as the decision of its four major clients to jump ship.

The breach, CEO Russell Fuchs wrote the court, “resulted in enormous expenses that were beyond the ability of the Debtor to bear.”

Millions of patients who had undergone lab testing at Quest Diagnostics and LabCorp facilities are said to have been affected by the breach.

In its wake, AMCA paid roughly $400,000 (£314,000) to hire outside security professionals to determine the source of the attack.

It also cost millions of dollars to notify anyone who might have been affected.

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