Camp Mystic Files Bankruptcy Plan to Liquidate Assets Amid Criminal Probe

Key points

• Camp Mystic filed a Chapter 11 reorganization plan on September 25, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas.
• The plan proposes selling the camp's 725-acre property near Hunt, Texas, along with all other assets to a single buyer.
• Camp leadership expressed a preference for a buyer who will continue operating the site as a camp, though no legal requirement exists for this.
• The bankruptcy filing lists liabilities between $10 million and $50 million against assets valued between $100,001 and $500,000.
• Proceeds from the sale will first cover insurance claims, with remaining funds distributed pro-rata to unsecured creditors, including victims' families.
• The Texas Rangers are conducting a criminal investigation into camp leaders for potential manslaughter and negligent homicide, though no charges have been filed.

Background

Camp Mystic filed for Chapter 11 bankruptcy protection in June 2026 after facing multiple wrongful-death lawsuits stemming from the July 4, 2025, flash flood along the Guadalupe River. The disaster killed 25 campers, two counselors, and camp owner Dick Eastland. Prior to the bankruptcy filing, the Texas Rangers executed 14 search warrants to seize digital evidence from camp leadership, alleging that the camp failed to implement adequate emergency plans or evacuate campers despite flood warnings. Legislative hearings had previously found the camp lacked required emergency plans, and families of victims have also sued state health officials for wrongful licensing.

How outlets are covering it

TPR and NBC 5 Dallas-Fort Worth report that the bankruptcy plan proposes selling the property, with TPR noting the 725-acre size and NBC 5 specifying 749 acres. KWTX, citing CBS News Texas, highlights that the filing references an unidentified 'stalking horse bidder' potentially connected to camp alumnae and families, though neither the buyer's identity nor the purchase price was disclosed. KWTX also notes that victims' families' attorneys, such as Sam Taylor, have criticized the bankruptcy process as an attempt to avoid accountability, while bankruptcy experts like Joyce W. Lindauer view liquidation as the only realistic path given the magnitude of the disaster. All sources agree that the plan is not final and requires court approval, and that the bankruptcy court will not determine fault or damages, allowing civil lawsuits to proceed separately.

Why it matters

The bankruptcy filing marks a significant legal and financial turning point for Camp Mystic, potentially determining the fate of its historic property and the compensation for victims' families. The concurrent criminal investigation by the Texas Rangers adds a layer of potential criminal liability for camp leaders, which could impact the bankruptcy proceedings and public perception of the camp's response to the flood. The outcome of the bankruptcy sale and the criminal investigation will have long-term implications for the camp's legacy and the families of the victims.

What to watch

The bankruptcy plan must be approved by the U.S. Bankruptcy Court for the Southern District of Texas before it can take effect. The Texas Rangers' criminal investigation is ongoing, and no charges have been filed yet. Victims' families may resume or pursue civil lawsuits, with any payments coming first from available insurance and then through the bankruptcy process. The identity of the 'stalking horse bidder' and the proposed purchase price remain undisclosed.