Priority Towing and Recovery Inc, a towing and roadside assistance provider based in Columbia, Maryland, has filed for Chapter 11 bankruptcy. The company has operated in the region for nearly 12 years.
With this step, the company joins a growing number of other regional towing service providers that have turned to bankruptcy in the last few months.
Priority Towing and Recovery Inc Enters Bankruptcy
Indicating a financial strain in the regional towing industry, Priority Towing and Recovery Inc submitted its Chapter 11 petition on April 17, 2026.
Based on the filing details on the database of RK Consultants, the company qualifies as a small business debtor under Subchapter V of Chapter 11. This type of bankruptcy is designed to help small businesses reorganize more quickly and at a lower cost compared to traditional Chapter 11 proceedings.
Attorney Daniel Staeven of Frost & Associates, LLC is the legal counsel for the company. Owner Steve Palmer signed the petition as the company’s authorized representative in the U.S. Bankruptcy Court for the District of Maryland.
Filings Made So Far
Since the filing, several documents have been submitted to the court. These include a list of the 20 largest unsecured creditors. Some of these creditors include United First Capital Experts, Fox Business Funding LLC, the Alternative Funding Group Corp, Beacon Funding, LG Funding LLC, and more.
Additional filings include a summary of assets and liabilities and a creditor matrix verification.
According to the case details available on PacerMonitor, the company made several other filings. One filing includes a statement of financial affairs outlining recent revenue trends. Other finance-related filings were a balance sheet, cash flow statement, and tax documents for 2024. It submitted a corporate ownership statement as well.
The filing suggests the company is seeking to continue operations as normal during the proceedings. This is supported by its motion to pay pre-petition wages, which suggests an effort to retain employees and deliver usual towing services.
A creditors’ meeting is scheduled for May 5, 2026. Proofs of claim are due by June 26, 2026.
A summary of the Chapter 11 petition, which has complete details on PACER as well, is here:
- Filing Date: April 17, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Maryland
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 26-14108
- Estimated Assets: Between $1,000,001 and $10 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: Between 1 and 49
- Reason for Filing: Restructure business under court supervision
About the Company
Ever since it was founded in 2014, the company has been offering towing and roadside assistance services across Columbia, Baltimore, and Ellicott City.
According to the official website, Priority Towing and Recovery Inc has a fleet that can handle light-, medium, and heavy-duty towing. Services also include jump-starts, lockout assistance, tire changes, and on-site battery replacement.
Beyond this, the company has an in-house repair facility that offers solutions for roadside emergencies and follow-up vehicle repairs.
Previous Filings by Towing Services
Bankruptcy filings in the towing industry have increased since last year. In August 2025, Jacksonville-based Troyz Towing & Storage, Inc., a company with more than 20 years in business, filed for Chapter 11 amid financial challenges. Personal injury claims and administrative liabilities were a few reasons for the filing, along with debts.
Texas-based Sheffield Towing Service, LLC, had submitted a Chapter 11 petition on January 2, 2026. It entered bankruptcy following a major vehicle crash in El Paso in May last year. According to court filings, a plaintiff sought more than $1 million in damages. This appeared to lead to its financial challenges and force it to reorganize.
These consecutive filings reflect a growing pattern of issues, such as liability exposure and debt burdens, which push regional towing companies toward court-guided reorganization. The outcome of the current case, along with others discussed above, is expected to demonstrate how towing providers can manage financial strain without disrupting usual roadside support services.
