Camp Mystic's Bankruptcy Moves Wrongful-Death Claims to Federal Court, Downgrading Families as Creditors

Camp Mystic filed for Chapter 11 bankruptcy on June 24, 2026, one year after floods killed 27 people at the Texas youth camp. The filing automatically routes wrongful-death and injury claims from state courts into federal bankruptcy proceedings, where victim families become unsecured creditors with minimal priority. Texas regulators had cited the camp's absence of written emergency plans and its successful appeals to remove buildings from federal flood maps before the disaster.