A 14-Year-Old California IDD Care Provider Enters Chapter 11

Liberty Behavioral & Community Services Inc., an intellectual and developmental disability care provider, files for bankruptcy.

Written By Twinkle Jha
Representative Image, Liberty Behavioral & Community Services Inc. enters bankruptcy (Image credit: Photo By SHVETS production from Pexels)

Liberty Behavioral & Community Services Inc. has joined other nationwide behavioral healthcare providers in filing for bankruptcy. Based in Culver City, California, the company has provided behavioral healthcare and support services since 2012. Its proceedings are currently taking place in the U.S. Bankruptcy Court for the Central District of California.

Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts, restructure obligations, and continue operating while working toward financial stability. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.

Overview of the Filing

Liberty Behavioral & Community Services Inc. submitted a Chapter 11 petition to the court on October 23, according to PACER records. Ladale Jackson, the company’s CEO, signed the petition before it was filed.

Attorney Michael Jay Berger is providing legal representation to the company.

The court records have not specified the reasons that could have led to the filing. However, the company has listed over 50 creditors in its petition.

Case Related Details

Court records show that the company submitted a list of creditors with the largest unsecured claims. These include Academy Behavioral of CA, Internal Revenue Service, CalChoice, Apollo, Parkside Funding Group LLC, Soltmon and Wattles, and others.

Filing records indicate that funds will be available for distribution to the unsecured creditors.

A summary of the Chapter 11 petition is shared here:

  • Filing Date: October 23, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Central District of California
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 2:26-bk-20739-BR
  • Estimated Assets: Between $1,000,001 and $10 million
  • Estimated Liabilities: Between $1,000,001 and $10 million
  • Estimated Creditors: Between 50 and 99

About the Company

Liberty Behavioral & Community Services Inc. provides care and support services for individuals. These services cater to those with autism spectrum disorder (ASD), intellectual and developmental disabilities (IDD), and behavioral health needs. The company’s services include residential homes, group homes, and residential facilities for substance abuse support.

Founded in 2012, the company also offers life skills development, vocational training, behavioral support, and community-based programs. The company works with families, individuals, and caregivers to develop personalized care plans.

Several other behavioral healthcare providers have sought Chapter 11 protection in recent months.

On September 18, an outpatient mental health clinic submitted its Chapter 11 petition. MPB Group, Inc. faced a gap between its assets and liabilities, the case records showed. The company has been providing specialized behavioral health services for nearly 23 years.

A Nevada-based firm initiated bankruptcy on August 21. Court records showed that the disability and behavioral health support services provider has listed close to 200 creditors. Tancell Care LLC has been providing its services across Northern and Southern Nevada.

A behavioral healthcare service provider from Palm City, Florida commenced bankruptcy proceedings on April 12. The filing records showed that ABA Therapy Solutions, LLC’s liabilities outpaced its assets. The behavioral health company has been offering its services for around 14 years.

As Liberty Behavioral & Community Services Inc. joins this list, its financial footing is expected to depend on upcoming court rulings.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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