HUNT, Texas – Camp Mystic has proposed selling its property and eventually dissolving as the camp faces ongoing legal and financial challenges more than three months after filing for bankruptcy.

Under the proposal, families with wrongful death claims connected to the July 4, 2025, Hill Country floods would be allowed to resume pending lawsuits or file new ones.

Those claims would be paid first through available insurance coverage. If insurance does not fully cover the claims, the families would share any remaining funds with other unsecured creditors.

The plan must still be approved by the bankruptcy court.