Full Breakdown
Camp Mystic Files for Chapter 11 Bankruptcy Amid Ongoing Lawsuits and Investigation
6/25/2026, 11:38:24 AM
The Bankruptcy Filing
On June 24, 2026 the owners of Camp Mystic filed a Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Texas, Houston. The filing lists four affiliated entities—Camp Mystic LLC, Natural Fountains Properties Inc., Mystic Camps Family Partnership Ltd., and Mystic Camps Management LLC. Four Eastland family members (Willetta A. Eastland, Richard G. Eastland Jr., George A. Eastland, and Edward S. Eastland) signed the eight-page petition. Debt is reported between $10 million and $50 million; assets are reported in two ranges—$1 million to $10 million in some filings and $100,001 to $500,000 in others. Dallas attorney Martin A. Sosland is listed as counsel, and U.S. Bankruptcy Judge Christopher M. Lopez has been assigned to oversee the case.
Background: July 4, 2025 Flood
Camp Mystic, a century-old all-girls Christian camp on the Guadalupe River in Kerr County, was inundated by flash floods on the morning of July 4, 2025. The surge swept through the camp’s low-lying cabins, killing 25 girls, two teenage counselors, and the camp’s co-owner/director Dick Eastland. One 8-year-old camper, Cecilia “Cile” Steward, remains missing. State investigators later concluded that the camp lacked a written emergency-evacuation plan, had not trained staff for flood response, and left evacuation to only three men—the co-owner, his son, and a security guard.
Data & Statistics
- Camp deaths: 27 (25 girls + 2 counselors) + director = 28 according to some sources; other reports list 27.
- Missing campers: 1 (Cile Steward).
- Adults on site: At least 39, none assigned a formal evacuation role.
- Debt range: $10 million–$50 million (or “exceeds $10 million”).
- Asset range: $100,001–$500,000 (or $1 million–$10 million).
- Lawsuits: Families filed three suits in November 2025 seeking >$1 million each, alleging gross negligence.
Why It Matters
The bankruptcy pauses the pending civil suits, converting families into unsecured creditors who must seek compensation from the limited pool of camp assets. The case also highlights systemic gaps in flood-risk management for youth camps and may influence future Texas legislation on emergency-plan compliance.
Official Statements & Responses
- Camp Mystic said it “heard concerns expressed by grieving families, members of the Texas House and Senate investigating committees, and citizens across our state,” and therefore withdrew its 2026 license application.
- Family spokesperson Carrie Hanna emphasized honoring her daughter Hadley while the anniversary approaches.
- Attorney Paul Yetter, representing multiple families, warned that “bankruptcy will not stop all responsible parties from being held accountable.”
Criticism & Opposition
The June 18 legislative report faulted the camp for “inadequate advance emergency planning, storm preparation, evacuations and incident management.” Families’ lawsuits describe the tragedy as “entirely preventable” and accuse the owners of “profit over safety.” State legislators publicly blasted the camp’s lack of a state-required evacuation plan and chaotic post-flood reunification efforts.
On-the-Ground Reports
Witnesses described girls screaming “help!” as floodwaters surged. Attendees at legislative hearings wore “Heaven’s 27” pins bearing photos of the deceased. Video footage released by investigators shows cabins being swept away while staff remained inside.
Conflicting Reports & Gaps
Sources differ on the exact death toll at the camp (27 vs. 28) and on the camp’s financial figures (assets reported as $100 k–$500 k versus $1 M–$10 M). The precise number of lawsuits and the status of the criminal investigation by the Texas Rangers remain unclear.
Verbatim Quotes
- “The lessons to be learned from the camp’s inadequate emergency planning and response are worthy of careful study for opportunities to avoid similar future tragedies,” — Texas legislative report
- “heard the concerns expressed by grieving families, members of the Texas House and Senate investigating committees, and citizens across our state.” — Camp Mystic statement, April 2026
- “Bankruptcy will not stop all responsible parties from being held accountable,” — Paul Yetter, families’ attorney
- “We intend to demonstrate and prove that this sudden surge of floodwaters far exceeded any previous flood in the area by several magnitudes, that it was unexpected and that no adequate warning systems existed in the area,” — Jeff Ray, camp counsel
- “Right now we are focused on honoring and remembering Hadley and our girls as we approach the year anniversary of their tragic deaths.” — Carrie Hanna, family spokesperson
What’s Next
The bankruptcy court will determine the treatment of the families’ claims, potentially converting them into creditor claims. Parallel criminal and civil investigations by the Texas Rangers and the Department of State Health Services continue. Unless the court approves a reorganization plan, Camp Mystic is expected to remain closed, and the Eastland family may face further legal exposure.
