Sheffield Towing Service, LLC has filed for voluntary Chapter 11 bankruptcy. The filing comes after a May 2025 lawsuit tied to a 12-vehicle crash in El Paso.
Sheffield Towing Service, LLC Files for Bankruptcy Following Lawsuit
According to the latest PACER records, on January 2, 2026, Sheffield Towing Service, LLC filed a voluntary petition for a Chapter 11 bankruptcy. The Texas-based towing service business made the filing in the U.S. Bankruptcy Court for the Western District of Texas.
Attorney Charlie Shelton of Hayward PLLC is representing the towing company in court. Caci Koegel submitted the Chapter 11 petition on behalf of the company.
Sheffield Towing Service, LLC’s latest bankruptcy filing follows a tough last year when the towing company was under fire due to a 12-vehicle crash in El Paso. According to KFOX 14, the semi crash that occurred on May 8 led to the death of a 65-year-old man whose son filed a lawsuit against the towing company.
In a separate lawsuit, a plaintiff sought over $1 million in damages from Sheffield Towing Service, LLC for medical expenses, lost income, and physical and emotional suffering.
Company Background
Sheffield Towing Service, LLC has been offering a range of towing and recovery services across West Texas for ten plus years. Its services include light, medium, and heavy-duty towing, roadside assistance, accident recovery, tire changes, and load transfers.
Sheffield Towing Service, LLC’s service areas include several Western Texas locations. These are Ozona, Sanderson, Rankin, Mertzon, Iraan, San Angelo, McCamey, Sonora, Big Lake, Dryden, Girvin, Barnhart, and Bakersfield.
Proceedings So Far
Sheffield Towing Service, LLC has opted for a Chapter 11 filing as its aggregate noncontingent liquidated debts (excluding debts owed to insiders or affiliates) are less than $3,424,000, the filing details show. This amount can be adjusted on April 1, 2028, and every 3 years after that.
Data available on PACER further state that the Texas-based towing service is a small business debtor under 11 U.S.C. § 101(51D). This is why Sheffield Towing Service, LLC has chosen to move ahead through Subchapter V of Chapter 11.
Below are other crucial details related to the latest bankruptcy:
- Filing Date: January 2, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Western District of Texas
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 26-70004-sm
- Estimated Assets: $1,000,001-$10 million
- Estimated Liabilities: $1,000,001-$10 million
- Reason for Filing: Reorganize business under court supervision
Sheffield Towing Service, LLC currently owes roughly 49 creditors in total, the filing says. Funds will be available for distribution to these unsecured creditors.
Among the documents submitted by the Texas-based towing company to the court is a list of the 20 largest unsecured creditors.
WE West Texas Towco LLC, an affiliated entity of Sheffield Towing Service, LLC, also submitted a bankruptcy petition in the court on January 2, 2026.
The Chapter 11 filing allows Sheffield Towing Service, LLC to reorganize its finances while continuing operations. As the case progresses, its outcome will demonstrate whether the company resolves liability issues related to the litigation and stabilizes its business.
