Cheer Athletics Plano Declares Bankruptcy, Pausing Abuse Trial

Bankruptcy Filing Halts Legal Proceedings

Cheer Athletics Plano, one of the most prominent cheer gyms in the United States and part of the nationally known Cheer Athletics network, filed for Chapter 11 bankruptcy protection on November 2, 2025, in the U.S. Bankruptcy Court for the Eastern District of Texas. The filing immediately froze all ongoing litigation, including a civil trial involving allegations of sexual abuse by a former coach. According to public records, the gym reported assets under $50,000 and liabilities between $1 million and $10 million. Under U.S. bankruptcy law, this automatic stay prevents the case from moving forward until a judge lifts the order or the bankruptcy process concludes.

The Abuse Allegations Against the Gym

The paused lawsuit stems from accusations that a former Cheer Athletics Plano coach, identified as Jason McCartney, sexually abused a minor athlete affiliated with the gym. The complaint, which names both McCartney and Cheer Athletics as defendants, had reached the stage of jury selection when the bankruptcy filing was made. The case had drawn significant attention due to the high-profile reputation of Cheer Athletics, a brand that has dominated competitive cheerleading for decades.

The Victim’s Lawyer Calls It a Strategic Delay

The victim’s attorney criticized the timing of the bankruptcy, arguing it was not about financial distress but about stalling justice. “I believe the bankruptcy was intended to delay the trial,” she said, adding that the filing effectively halted jury selection and derailed a process her client had waited years to begin. Legal analysts point out that filing for Chapter 11 protection before or during litigation is a known tactic to pause proceedings and potentially limit damages exposure while an organization reorganizes its finances.

What Chapter 11 Means for the Case

By filing for Chapter 11, Cheer Athletics Plano becomes a “debtor in possession,” maintaining operational control while restructuring its debts under court supervision. The bankruptcy shields the organization from immediate judgments, meaning the plaintiff must now file a claim within the bankruptcy proceedings. To resume the civil trial, the victim’s legal team would need to seek relief from the automatic stay, a motion that could take months or longer to resolve. The court will now oversee the gym’s finances, approve a reorganization plan, and determine how creditors, including the abuse survivor, will be paid.

Impact on Survivors and the Cheer Industry

This development has broader implications for survivors of abuse within youth sports. The bankruptcy filing delays any chance of immediate justice for the alleged victim, forcing her to navigate complex bankruptcy proceedings in addition to the original trauma of the case. For the cheer industry, the situation underscores systemic accountability issues and the financial tactics organizations may use to avoid liability. Cheer Athletics, with gyms across the country, faces mounting scrutiny as parents, athletes, and regulators question how the network will handle both the bankruptcy and the abuse allegations.

What Comes Next

The next steps in the case depend on the bankruptcy court’s decisions. Cheer Athletics Plano will need to submit a reorganization plan, listing creditors and disclosing its financial obligations. The plaintiff’s legal team is expected to challenge the timing of the filing and request that the stay be lifted so the trial can proceed. Meanwhile, other Cheer Athletics locations continue to operate, though the Plano facility’s troubles could affect the organization’s broader reputation and stability.

The Broader Context

For survivors and advocates, the Cheer Athletics case illustrates how bankruptcy law can intersect with justice in ways that disadvantage victims. While the filing may be legally permissible, its timing, just as jury selection began, has drawn widespread criticism and revived conversations about whether the law should allow accused institutions to delay accountability through financial maneuvers.

Final Takeaway

Cheer Athletics Plano’s bankruptcy filing has thrown an already emotional and high-stakes trial into limbo. Whether the case resumes or remains stalled will depend on federal bankruptcy proceedings in the coming months. For now, the alleged survivor and the broader cheer community are left waiting once again for justice that was moments away from being heard in court.