SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-QSB

(Mark One)

þ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2005

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from                      to                     .

Commission file number: 333-113034

COLLINS RECEIVABLES, LLC

(Exact name of small business issuer as specified in its charter)

Delaware	20-0620580
State or other jurisdiction of	(I.R.S. Employer
incorporation or organization	Identification No.)

2101 W. Ben White Blvd., Suite 103, Austin, TX 78704
(Address of principal executive offices)

Issuer’s telephone number, including area code: (800) 570-5007

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such report(s), and (2) has been subject to such filing requirements for the past 90 days. Yes o No þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No o

As of June 30, 2005, there were no Class A Membership Units outstanding.

Transitional Small Business Disclosure Format: Yes o No þ

COLLINS RECEIVABLES, LLC

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements		1
Item 2. Plan of Operation		13
Item 3. Controls and Procedures		15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		16
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		16
Item 3. Defaults Upon Senior Securities		16
Item 4. Submission of Matters to a Vote of Security Holders		16
Item 5. Other Information		16
Item 6. Exhibits and Reports on Form 8-K		16
Section 302 Certifications of CEO
Section 302 Certifications of CFO
Section 906 Certifications of CEO
Section 906 Certifications of CFO

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

COLLINS RECEIVABLES, LLC
BALANCE SHEET
As of June 30, 2005 and December 31, 2004

	June 30,			December 31,
	2005			2004
ASSETS
Cash and cash equivalents	$	1,109,167		$	108,036
Current Assets		1,109,167			108,036
TOTAL ASSETS	$	1,109,167		$	108,036
LIABILITIES AND MEMBER’S EQUITY
Accounts payable- Collins Financial Services, Inc.	$	257,454		$	245,106
Members units subscribed		1,101,452			107,000
Total liabilities		1,358,906			352,106
Member’s capital	$	(249,739	)	$	(244,070	)
Total member’s equity		(249,739	)		(244,070	)
TOTAL LIABILITIES AND MEMBER’S EQUITY	$	1,109,167		$	108,036

See accompanying notes.

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COLLINS RECEIVABLES, LLC
STATEMENT OF OPERATIONS

Three months ended June 30, 2005 and 2004

	2005		2004
REVENUES
Sales proceeds on owned receivables	$	—	$	—
Collections on owned receivables		—		—
Less: Basis in owned receivable sales and collection proceeds		—		—
Net Revenues		—		—
OPERATING COSTS AND EXPENSES
Collection services		—		—
Communication costs		—		—
Professional fees		—		—
Postage and delivery		—		—
General and administrative expense		25		71,919
Total operating costs and expenses		25		71,919
OTHER INCOME AND EXPENSE
Interest income		5,022		1
Total other income and expense		5,022		1
INCOME TAX EXPENSE		—		—
NET INCOME (LOSS)	$	4,997	$	(71,918	)

See accompanying notes.

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COLLINS RECEIVABLES, LLC
STATEMENT OF OPERATIONS
Six months ended June 30, 2005 and the
Period from January 8, 2004 (Inception) through June 30, 2004

	2005			2004
REVENUES
Sales proceeds on owned receivables	$	—		$	—
Collections on owned receivables		—			—
Less: Basis in owned receivable sales and collection proceeds		—			—
Net Revenues		—			—
OPERATING COSTS AND EXPENSES
Collection services		—			—
Communication costs		—			—
Professional fees		—			—
Postage and delivery		—			—
General and administrative expense		12,378			159,389
Total operating costs and expenses		12,378			159,389
OTHER INCOME AND EXPENSE
Interest Income		6,708			1
Total other income and expense		6,708			1
INCOME TAX EXPENSE		—			—
NET INCOME (LOSS)	$	(5,670	)	$	(159,388	)

See accompanying notes.

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COLLINS RECEIVABLES, LLC
STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2005 and the
Period from January 8, 2004 (Inception) through June 30, 2004

	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(5,670	)	$	(159,388	)
Increase in accounts payable- Collins Financial Services, Inc.		12,348			159,369
Cash flows from (used in) operating activities		6,679			(19	)
CASH FLOWS FROM INVESTING ACTIVITIES		—			—
CASH FLOWS FROM FINANCING ACTIVITIES
Member’s contributed capital		994,452			1,000
Cash flows from financing activities		994,452			1,000
NET INCREASE IN CASH		1,001,131			981
CASH AT BEGINNING OF PERIOD		108,036			0
CASH AT END OF PERIOD	$	1,109,167		$	981
SUPPLEMENTAL DISCLOSURE
Income taxes paid	$	—		$	—
Interest paid	$	—		$	—

See accompanying notes.

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 1 — ORGANIZATION AND BACKGROUND

Organization

Collins Growth & Income Fund, LLC, a Delaware limited liability company, was formed in January 2004 and has no prior operating history. On September 7, 2004 the name was changed to Collins Receivables, LLC.

The primary business purpose of Collins Receivables, LLC (“Company”) is to raise equity capital from the sale of membership units (“Units”) and to use substantially all of the net proceeds and future operating revenues to purchase defaulted and charged-off consumer receivables (“Receivables”). The sole member of the Company is Collins Financial Services, Inc., (“CFSI”). CFSI is a Receivables servicing firm based in Austin, Texas that has conducted this business since 1996 and an affiliated entity of the Company. The Company’s fiscal year end will be based on the calendar year and will end on December 31 of each year.

Nature of Operations

The Company will acquire defaulted receivables that have been charged-off by the original creditor. The acquisitions of the defaulted receivables are expected to be made at significant discounts with the intent of collecting or selling some of the accounts and earning a profit. The Company is a manager managed limited liability company and its managers are presently officers of CFSI. CFSI is compensated for its services to the Company by a series of fees specified in the operating agreement.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (GAAP) and to general practices within the financial services industry. The following summarizes the more significant of these policies.

Purchase of Defaulted Receivables

The Company anticipates purchasing defaulted receivables at a substantial discount from the uncollected principal balance of the loans. FASB Statement No. 91, Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases, requires that discounts be recognized as an adjustment of yield over a loan’s life. Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer, supersedes Practice Bulletin 6, Amortization of

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Purchase of Defaulted Receivables (continued)

Discounts on Certain Acquired Loans, further addresses amortization of discounts on certain acquired loans, which involves intertwining issues of amortization of discount, measurement of credit losses, and recognition of interest income. At the purchase date, defaulted receivables are initially separated into classifications of available-for-sale and held-for-collection. The purchase price is assigned to each classification on an estimated relative fair value basis.

The loan pools are accounted for at the contractual principal balance with a related purchase discount which nets to the relative fair value assigned at the purchase date.

Defaulted receivables that management has the intent and ability to hold for the foreseeable future or until maturity or payoff (held for collection) are reported at their outstanding unpaid principal balances reduced by any charge-off or specific valuation accounts and net of purchase discounts.

Defaulted receivables classified as available-for-sale are recorded at the lower of cost or market with any subsequent adjustments reflected as an adjustment to equity (other comprehensive income) in the period recorded. Upon sale, the proceeds are included in revenues and the remaining basis in the pool of loans sold are included the basis of owned receivables sold on the income statement.

At the time of acquisition, the sum of the acquisition amount of the loan and the discount to be amortized should not exceed the undiscounted future cash collections that are both reasonably estimable and probable. The discount on an acquired loan should be amortized over the period in which the payments are probable of collection only if the amounts and timing of collections, whether characterized as interest or principal, are reasonably estimable and the ultimate collectibility of the acquisition amount of the loan and the discount is probable. If these criteria are not satisfied, the loan should be accounted for using the cost-recovery method. The Company anticipates the majority of the defaulted receivables acquired will be accounted for using the cost recovery method.

Cash collections on receivables recorded as held-for-collection are recorded as revenue in the period received. Application of the cost-recovery method requires that any amounts received be applied first against the recorded amount of the loan (as basis in owned receivables collected); when that amount has been reduced to zero, any additional amounts received are recognized as income.

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Purchase of Defaulted Receivables (continued)

The cost-recovery method should be used until it is determined that the amount and timing of collections are reasonably estimable and collection is probable. If the remaining amount that is probable of collection is less than the sum of the acquisition amount less collections and the discount amortized to date, then either the loan should be written down or an allowance for uncollectibility related to that loan should be recognized. If the remaining amount that is probable of collection is greater than that sum, then the difference between that sum and the revised amount that is probable of collection should be amortized on a prospective basis over the remaining life of the loan.

Allowance for Losses on Receivables

The carrying value of receivables will be reviewed regularly (at least quarterly) by management and any permanent impairment is included as an additional charge to the basis of receivables in the period discovered.

Allowance for losses on receivables is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the adequacy of the allowance is based on CFSI’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and current economic conditions. There was no allowance for losses on receivables at June 30, 2005.

Sale of Receivables with Recourse

Sales of receivables are accounted for as sales, when control over the assets has been surrendered. Gains and losses from sales of defaulted receivables are recognized upon settlement with investors. Sales of defaulted receivables typically provide the purchaser the right to have the Company repurchase selected receivables for a pre-determined period of time after the sales date based on pre-determined criteria or warranties provided in the sales agreement. The Company sets aside an estimated liability for the repurchase obligation at the sales date. The Company accounts for the repurchase of defaulted receivables sold as a reduction of sales revenue in the period in which the repurchase occurs.

Use of Estimates

     The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates (continued)

affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an initial maturity of three months or less to be cash equivalents. These financial instruments potentially subject the Company to concentrations of credit risk. The Company minimizes this risk by dealing with major financial institutions that have high credit ratings.

Financial instruments and credit risk

Financial instruments that potentially subject the Company to credit risk include cash, receivables and investments in defaulted receivables. Cash is deposited in demand accounts in federally insured domestic institutions to minimize risk. Although the balances in these accounts may exceed the federally insured limit from time to time, the Company has not incurred losses related to these deposits and intends to utilize banks with high financial stability. Accounts receivable are generally unsecured. With respect to accounts receivable, the Company performs ongoing credit evaluations of customers and generally do not require collateral. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary.

The amounts reported for cash equivalents, receivables, notes payable, accounts payable and accrued liabilities are considered to approximate their market values based on comparable market information available at the respective balance sheet dates and their short-term nature.

Income Taxes

The Company has been organized as a Partnership under the provisions of the Internal Revenue Code. As a result, the members of the Company pay all Federal income tax expense. There is a risk that the Company would be classified as a publicly traded partnership by the Internal Revenue Service. In so classified, the Company would be taxed as a corporation for federal income tax purposes.

For entities taxed as corporations, income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Income Taxes (continued)

using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset in which the Company is not able to determine on a more likely than not basis that the deferred tax asset will be realized.

The Company is subject to state and local income taxes that range from 1.9% to 9.3% of income earned in each jurisdiction. The majority of the Company’s revenue will be considered Texas gross receipts and will be subject to a tax of 4.5% of Federal taxable income.

Comprehensive Income

SFAS No. 130, Reporting Comprehensive Income, establishes standards for reporting and display of comprehensive income and its components in financial statements. It requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income consists of net earnings, the net unrealized gains or losses on available for sale defaulted receivables and is presented in the consolidated statement of changes in stockholder’s equity.

NOTE 3 — INVESTMENT IN DEFAULTED RECEIVABLES

At June 30, 2005, there had been no purchases of defaulted receivables. The Company intends to purchase defaulted receivables in the future.

NOTE 4 — INCOME TAXES

The Company expects that any income or loss will be classified as ordinary “passive” income or loss to the holders of the Units for Federal Income Tax purposes. However, the Company has not requested, and will not request, a ruling from the Internal Revenue Service to that effect.

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 5 — MEMBERSHIP UNITS

The Company is in the process of offering a minimum of 2,500 and a maximum of 25,000 class A membership units (“Units”). Each Unit represents a $1,000 equity interest. The Units are not callable or redeemable. As such, the Units will increase equity in the accompanying balance sheet when they are sold. The Company expects to pay 9.375% of the amounts collected plus between $275,000 and $325,000 as fees and costs to complete this transaction. Until the Company raises the minimum of $2,500,000 from the sale of membership units the amounts received are subject to repayment and have been classified as a liability on the balance sheet.

The Company’s operating agreement provides for a non-compounded cumulative 10.25% annualized return on the capital contributed (the “Invested Capital”), to be paid quarterly with respect to the Units (except the Unit held by CFSI) to the extent of net available cash commencing with the end of the first full fiscal quarter following the closing of the minimum offering (the “Investment Return”). This is not a guaranteed yield.

As the Receivables are collected, members will receive from collection proceeds, if any, an amount equal to any part of their unpaid Investment Return and/or their remaining capital account balance (as determined pursuant to the Limited Liability Company Operating Agreement). After receiving their Investment Return and/or their remaining capital account balance, the Members, will receive no further payments and any remaining collection proceeds will be distributed to CFSI.

The Company intends to begin selling assets and distributing all available cash to Members (to the extent of their unpaid Investment Return and capital account Balance) beginning after the end of the fourth full year following the end of the offering, with the final distribution expected approximately six years after the termination of the offering. In all events, the Company will terminate and be liquidated no later than eight years from the date of the closing of the minimum offering.

Members of our company have limited voting rights pursuant to our operating agreement. Members may vote only with respect to certain fundamental organizational matters affecting our company or the Units and are not entitled to any voice in our other operations or policies.

Under the operating agreement, the Company may issue up to 30,000 class A Units and one (1) class B membership unit. As of June 30, 2005, one class B unit was outstanding, which is held by CFSI. There were no class A units outstanding at June 30, 2005. Consequently, assuming a sale of the maximum of 25,000 Units offered, the Company could sell up to an additional 5,000 Units in the future without seeking investor approval. The sale of additional Units, or rights to purchase additional Units, could reduce the amount of any distributions that the Company may make to the purchasers of the current offering during operations or in liquidation.

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 6 — COMMITMENTS

Litigation

The Company is not a party to any legal proceedings, and is unaware of any contemplated actions.

Repurchase Commitments

The Company often assumes a responsibility to repurchase defaulted receivables sold if they are found not to meet certain criteria expressed by the purchase documents. At June 30, 2005 the Company had not entered into any such transactions.

Repayment of Funds Advanced by CFSI

CFSI has incurred the cost of setting up the corporate entity (Collins Growth & Income Fund, LLC) and has incurred the legal fees and other out of pocket costs related to the initial capital placement. Should the offering be completed by the Company, it is anticipated that the Company would reimburse CFSI for the costs incurred with the corporate formation and fundraising. At June 30, 2005 costs incurred by CFSI on the Company totaled $257,454 and have been expensed by the Company as general and administrative expenses.

NOTE 7 — RELATED PARTY TRANSACTIONS

The Company is party to transactions with affiliates related through ownership interest or management agreement in the normal course of business. Some of the more significant related party transactions follow:

CFSI is compensated for its services to the Company by a series of fees specified in the operating agreement.

In consideration for the services of CFSI regarding Receivables, the following fees will be paid to CFSI:

(1) An “Acquisition Fee” in an amount deemed by the Company to be appropriate, but in no event to exceed 5% of the purchase price of Receivables identified by CFSI and acquired for the Company paid simultaneously with the acquisition of such Receivables.

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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005

NOTE 7 — RELATED PARTY TRANSACTIONS (continued)

(2)	A “Sales Fee” in an amount deemed by the Company to be appropriate, but in no event to exceed 20% of the gross proceeds received from sale, on a retail or wholesale basis, of Receivables resulting from the efforts of CFSI (whether paid in cash or property other than cash), payable immediately upon receipt of such proceeds.
(3)	A “Collections Fee” in an amount deemed by the Company to be appropriate, but in no event to exceed 50% of the gross proceeds resulting from efforts of CFSI to collect the Receivables (whether paid in cash or property other than cash) owned by the Company other than as a result of third party collection efforts. The Collections Fee shall be payable immediately upon receipt of such gross proceeds.

The Company, without cause, for any reason, commencing three years after the effective date of the operating agreement, may terminate it at any time, by giving written notice of such termination to CFSI. If the Company terminates CFSI, CFSI will be entitled to all fees earned prior to the effective date of termination.

NOTE 8 — LIQUIDITY

The operating capital for the Company will come from the net proceeds of the sales of Membership Units and revenue from Receivables collections and resale of defaulted receivables. Until the Company has successfully raised funds through the sales of Membership Units, the proceeds necessary to operate are expected to be advanced by CFSI.

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Item 2. Plan of Operation

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

     This Form 10-QSB contains or incorporates by reference forward-looking statements about our financial condition and the current status of our operations and business. These statements include, among others, statements concerning the benefits that we expect will result from our business activities and certain transactions once we have broken escrow and statements of our expectations, beliefs, future plans and strategies, anticipated developments and other matters that are not historical facts. When used in the following discussions, the words “believes,” “anticipates,” “intends,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on management’s expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These statements may be made expressly in this document or may be incorporated by reference to our Registration Statement on Form SB-2 (File No. 333-113034) filed with the U.S. Securities and Exchange Commission (“SEC”) on February 24, 2004, as amended.

THE COMPANY

     As used in this Form 10-QSB, all references to “we,” “us,” “Collins,” “Company” and “our” mean Collins Receivables, LLC. The address of our principal executive offices is 2101 West Ben White Boulevard, Suite 103, Austin, TX 78704, and our telephone number is (800) 570-5007. All references to “CFSI” means Collins Financial Services, Inc. (together with Paragon Way, Inc, formerly known as TxCollect, Inc., an affiliated entity, but excluding our company), our Class B member.

     We were formed as a Delaware limited liability company on January 8, 2004 for the purpose of purchasing, collecting, reselling and otherwise dealing in previously charged-off consumer debt receivables under credit card charges or consumer loans which are generally originated through commercial banks (“Receivables”). These Receivables will be purchased, sold, collected and resold by us, with the assistance of CFS, our Class B member and an affiliated entity of our company. CFS is a subsidiary of Collins Financial Services USA, Inc., a receivables servicing firm based in Austin, Texas that has been in the receivables business since 1996.

     On February 24, 2004, we filed a Registration Statement on Form SB-2 (File No. 333-113034) with the SEC for the purpose of raising capital from the sale of our Class A Membership Interests (the “Units”) and using the proceeds to implement our business plan. The Registration Statement went effective on November 12, 2004.

RECENT DEVELOPMENTS

     The following discussion is based upon, and should be read in conjunction with (i) the consolidated financial statements of CFS and financial statements of Collins for the periods ended June 30, 2005 (unaudited) and December 31, 2004 (audited) and the related statements of

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operations and statements of cash flows together with the notes to the consolidated financial statements; and (ii) our Registration Statement on Form SB-2 (File No. 333-113034), as amended, and herein incorporated by reference.

     We have been in the development stage since inception and have conducted no business operations other than organizational activities. From inception to date we have had no revenues. All subscription proceeds from the offering are being held in an escrow account with American Bank of Commerce, a State chartered banking association (the “Escrow Agent”). Proceeds of the offering will not be disbursed to us until the Escrow Agent receives $2,500,000 representing 2,500 Membership Units (the “Minimum Amount”) on or before November 12, 2005 (the “Initial Closing Date”). If the Minimum Amount is not received on or before the Initial Closing Date, then the Escrow Agent will be instructed to refund the face amounts of the subscriptions to the subscribers, less interest which will be retained by Collins. As of the date of this Form 10-QSB, we have not met the Minimum Amount.

PLAN OF OPERATION UPON RECEIPT OF MINIMUM AMOUNT

     Upon receipt of the Minimum Amount and during the first quarter of our operations, we will deposit most of the net proceeds in a receivables account at an independent financial institution. At or about the same time, we will, through the assistance of CFS, commence our analysis, valuation and negotiation of the acquisition of portfolios of charged-off Receivables. Once our analysis is complete and an acceptable purchase negotiated, a purchase price will be executed and the purchase price paid in cash. This process is typically completed in less than two weeks from the commencement of the analysis. As additional net proceeds are received, this process will be repeated. The types of portfolios that we purchase may appear in the market on a somewhat ad hoc basis. Consequently, investor funds may be held in our bank account for several weeks pending the next purchase. With respect to the purchase of Receivables, we will pay CFS an Acquisition Fee of up to 5% of the purchase price of the Receivables. We believe the cost of the Receivables will range from 4.5 cents to 9 cents per dollar of face value depending on various factors. Depending on the amount of net proceeds, we intend to initially purchase 15 to 25 portfolios. Except for certain fees paid to CFS as disclosed in our Registration Statement on Form SB-2 (File No. 333-113034), as amended, and herein incorporated by reference, we do not expect to incur any additional expenses in connection with the acquisition of Receivables.

     Continuing during the first quarter and following the acquisition of the portfolio we will remove those accounts where a debtor is deceased, has filed bankruptcy or where such account is similarly uncollectible. These accounts will then be returned to the seller of the portfolio for a credit against the purchase price. As to the retained portion of the portfolio, we will make a determination to proceed with collection and/or resell the remainder. We do not expect to incur any expenses in connection with these activities. We anticipate reselling approximately 25% of the portfolio and seeking collection on the balance.

     Commencing in the second quarter, we will resell certain portfolios. We expect the portfolios to be sold within 120 – 150 days of purchase. We will pay CFS a sales fee of up to 20% of the gross proceeds. We do not expect to incur any other expenses in connection with the resale of the portfolios. Funds generated from these sales are reinvested in new portfolios.

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     Our collection efforts, which will also begin in the second quarter after we commence operations, will initially involve attempting to locate the debtor and providing the debtor the opportunity to settle the debt. If the debt is not otherwise settled and the debtor located, an evaluation will be made to determine if the account is suit-worthy. Suit-worthy accounts are then outsourced to collection law firms that pursue legal remedies such as wage garnishments and securing judgments. Collection activities can last as long as four to five years on each portfolio. All costs associated with the collection effort will be paid by CFS.

     We intend to continue to purchase Receivables until approximately the end of the fourth full year following the receipt of the Minimum Amount from this offering. A collection fee of up to 50% of the gross proceeds will be paid to CFS. We will not incur any other costs of collection. After the fourth anniversary of the receipt of the Minimum Amount, we intend to begin selling our assets and distributing all net available cash to our members in accordance with the operating agreement.

     For the balance of the first year of operations, we will continue our collection efforts as to the retained portion of our existing portfolios. We will continue to reinvest funds generated from the sales of portfolios or from collections. In addition, as we continue to receive additional proceeds from this offering, we will continue our analysis, valuation and negotiation of the acquisition of additional portfolios and thereafter engage in the activities described above with respect to the first quarter and second quarter of our operations.

     Assuming we meet the Minimum Amount, we believe we can satisfy our cash requirements for the 12 months from the date we commence operations. We do not anticipate undertaking any research and development. We do not expect to purchase any significant materials nor equipment, as our company will rely on the services of our managers and CFS. We do not believe there will be any significant change in the number of employees.

Item 3. Controls and Procedures.

     During the period covered by this quarterly report, management had responsibility for our internal controls and procedures over our financial reporting. Our scope of internal control is intended to extend to policies, procedures, processes, systems, activities, initiatives, and endeavors required of a company with our limited transactions, expenses, and operations. It is the belief of management that, given the Company’s limited operations, our disclosure controls and procedures are effective. There were no significant changes in the Company’s internal controls or in other factors that could significantly affect those controls during the period covered by this report.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

     The exhibits required by Item 601 of Regulation S-B, as described in the following index of exhibits, are incorporated by reference or filed with this report as follows:

NO.	DESCRIPTION OF EXHIBIT
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Principal Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

     No reports on Form 8-K were filed during the quarter for which this Form 10-QSB is filed.

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SIGNATURE

     In accordance with the Exchange Act, the Registrant has caused this report to be signed on behalf of the Registrant by the undersigned in the capacities indicated, thereunto duly authorized on November 21, 2005.

COLLINS RECEIVABLES, LLC
By:	/s/ Walt Collins
	Chief Executive Officer
By:	/s/ Larry Vasbinder
	Chief Financial Officer, Principal Accounting Officer

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