Camp Mystic files for bankruptcy nearly a year after Texas floods killed 28 people

According to a filing made on Wednesday in the US Bankruptcy Court for the Southern District of Texas in Houston, the camp’s debts are estimated to be between $10 million and $50 million. Its assets were listed between $1 million and $10 million. The bankruptcy filing comes nearly a year after the devastating July 4 floods that struck the Texas Hill Country and caused massive destruction along the Guadalupe River.

Camp faces scrutiny over flood response

The camp’s owners and operators have faced a lot of criticism over how they handled the disaster. Earlier this month, state investigators released a 115-page report that criticised Camp Mystic’s emergency planning and response. The report found shortcomings in storm preparation, evacuation efforts, incident management and advance planning before the floods hit.

“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,” the authors said in an introduction to the 115-page report.

Investigators said the responsibility of evacuating campers largely fell to only three people, camp co-owner Richard “Dick” Eastland, his son and a security guard. Eastland died during the flooding.

Camp abandoned plans to reopen

In late April, Camp Mystic withdrew its application to reopen for the summer season. The decision came a day after an emotional legislative hearing attended by parents whose daughters died in the floods. At the time, camp officials acknowledged the loss of life and said they wanted to listen to concerns raised by families and lawmakers.

‘Precious lives were lost’

The camp added that the decision to withdraw its application was intended to remove any uncertainty about whether its leaders had listened to those concerns.

They stated, “heard the concerns expressed by grieving families, members of the Texas House and Senate investigating committees, and citizens across our state. Respect for those voices requires that we step back now.”

Families seek damages through lawsuits

Families of the victims filed a lawsuit against Camp Mystic in November, accusing camp operators of failing to take proper action as floodwaters approached the campground. The families are seeking more than $1 million in damages.

The lawsuit alleges that camp officials did not take the necessary steps to protect campers despite the growing threat from the rising waters.

Bankruptcy pauses legal cases

Experts say the bankruptcy filing could affect the legal process for victims’ families. Sarah Foss, global head of legal and restructuring at financial services company Debtwire told AP the filing temporarily stops ongoing lawsuits against the camp.

“Whether those lawsuits ultimately proceed in the bankruptcy court or the courts where they are pending, victims’ families will be treated as creditors who must seek compensation from a limited pool of money in the bankruptcy case rather than through individual jury verdicts,” Foss said in an email to AP.

This means families seeking compensation may have to recover damages through the bankruptcy proceedings instead of separate court judgments.

The eight-page bankruptcy filing was signed by four members of the Eastland family, which owns and operates the nearly 100-year-old camp. The court document provides limited details about the camp’s finances.

Floods claimed more than 130 lives

The Camp Mystic tragedy was part of a much larger disaster that struck the Texas Hill Country last July. The floods killed at least 136 people along the Guadalupe River, making it one of the deadliest flooding events in the state’s recent history. The scale of the disaster raised serious questions about preparedness and emergency response across the region. One Camp Mystic camper, Cecilia “Cile” Steward, who was 8 years old, remains missing.