Camp Mystic has filed for Chapter 11 bankruptcy nearly a year after the deadly Texas Hill Country floods that led to multiple lawsuits against the camp.
The filing places the camp into a federal process that allows it to continue operating while it works through its financial and legal obligations.
Link to flood litigation
Bankruptcy attorney and University of Houston adjunct professor R.J. Shannon says the move is likely tied to the ongoing litigation stemming from the flood deaths.
“I think there are obviously a lot of lawsuits against them because of the deaths last year. My strong guess is that’s the reason for the filing,” Shannon said.
What Chapter 11 means
Under Chapter 11, existing civil lawsuits are paused once the bankruptcy is filed. Shannon says any claims must instead move through the bankruptcy court process.
“The number one thing is going to be that the lawsuits are paused. They’re not going to file new lawsuits. That kind of stuff is going to need to go through the bankruptcy court,” Shannon said.
Next steps
Chapter 11 is designed to allow organizations to reorganize while continuing operations rather than shutting down immediately. The process also creates a court-supervised framework for handling claims and determining how available assets are distributed.
The case will now proceed through bankruptcy court, where Camp Mystic’s restructuring plan and next steps will be determined.
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