Atlantic Recovery Center, LLC has voluntarily filed for Chapter 11 bankruptcy. The company currently offers its services in Southwest Ranches, Florida as ‘Reign Residential Treatment Center.’
Court records indicate the filing is intended to reorganize the company’s finances after its reported liabilities exceeded its assets. The Chapter 11 filing allows the company to continue operating while it reorganizes under court supervision.
Atlantic Recovery Center, LLC Files for Bankruptcy
The mental health rehabilitation facility submitted its petition on July 7, 2026, according to PACER records. The case is taking place in the U.S. Bankruptcy Court for the Southern District of Florida (Fort Lauderdale Division).
The records classify Atlantic Recovery Center, LLC as a small business debtor. In addition, they show that the company has decided to move ahead using Subchapter V proceedings. These types of filings typically allow small businesses to fulfill their bankruptcy requirements in a faster and more cost-effective manner.
About the Company
Court records show that Atlantic Recovery Center, LLC currently operates as Reign Residential Treatment Center in Southwest Ranches, Florida. The behavioral healthcare provider offers individualized treatment for patients with a range of mental health conditions.
According to its website, the facility offers residential support. It also provides several evidence-based therapies, including cognitive behavioral therapy, family therapy, and dialectical behavior therapy. These therapies are offered in a boutique-based setup at the Florida location.
According to the company’s website, the facility is licensed by the Florida Department of Children and Families. The website also states that the facility is accredited by the Joint Commission and works with FARR-certified sober living homes and aftercare providers.
Recent Bankruptcy Filings Among Behavioral Healthcare Providers
Several behavioral healthcare providers have also sought bankruptcy protection in recent months.
An Arlington, Texas-based firm made its Chapter 11 filing on June 23, 2026. Case records showed that the operating losses of the mental health provider were more than its revenue. North Texas Behavioral Clinic, LLC also offers its psychiatric and behavioral health services across Waxahachie, Midlothian, Waco, and Irving.
P Health Inc. entered bankruptcy proceedings on May 8, 2026. The Houston-based psychiatry and therapy provider sought to reorganize its finances through the Chapter 11 filing. Case filings showed the business currently operates as PsychPlus and offers virtual care and in-person services.
A mental health service provider from Pennsylvania filed for restructuring bankruptcy on November 20, 2025. The petition showed that Omni Health Services had listed around 100 to 199 creditors. The company provides critical mental health support to people across the Philadelphia metro area.
Latest Case Details
Attorney Zach B. Shelomith of Shelomith Law represents the company in the bankruptcy proceedings, according to court records. In addition, Evan Prager is the authorized representative who signed the petition prior to filing.
Some of the company’s creditors, as shown in the records, are Capital Assist, LLC, Centric Behavioral Health, LLC, ET Health Holdings LLC, Rocket Capital NY LLC, and Zealie LLC. Court filings suggest that funds will be available for the unsecured creditors.
The Chapter 11 petition, which highlights the difference between the estimated range of assets and liabilities, is summarized here:
- Filing Date: July 7, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Southern District of Florida (Fort Lauderdale Division)
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 26-18871
- Estimated Assets: Between $0 and $50,000
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
- Reason for Filing: Restructure business under court supervision
Atlantic Recovery Center, LLC joins an expanding list of behavioral healthcare providers seeking bankruptcy protection amid financial troubles. The proceedings are expected to determine how it restructures its obligations while continuing operations.
