Durand Healing and Wellness Center, LLC has officially commenced Chapter 11 proceedings. The outpatient behavioral health practice joins a range of other similar healthcare providers that moved toward bankruptcy in recent months.
Case records show that the company currently faces a financial strain with liabilities outweighing its assets. The petition also includes a list of unsecured creditors with outstanding claims.
Durand Healing and Wellness Center, LLC Enters Bankruptcy
According to the case details available on Pacermonitor, the company initiated the Chapter 11 process on July 28, 2026. The proceedings are currently being handled by the U.S. Bankruptcy Court for the District of Arizona (Phoenix Division).
Durand Healing & Wellness Center, LLC operates as an outpatient behavioral health practice serving children, adolescents, and adults. The facility offers individual, couples, and family therapy. Other services are ADHD diagnostic evaluations, support groups, neurofeedback, and educational classes.
The company has a team of licensed clinicians who specialize in treating conditions, including anxiety, trauma, depression, autism, ADHD, substance use disorders, grief, chronic pain, personality disorders, and other behavioral health issues. The company uses cognitive behavioral therapy (CBT), eye movement desensitization and reprocessing (EMDR), dialectical behavior therapy (DBT), mindfulness, faith-based counseling, and trauma-focused therapy to provide the solutions.
Communities served include the Greater Phoenix area, including Anthem, Carefree, Peoria, Cave Creek, and New River.
Court records classify Durand Healing and Wellness Center, LLC as a small business debtor and state that it has decided to proceed under Subchapter V. Subchapter V is designed to provide a streamlined reorganization process for qualifying small business debtors.
Case Related Details
Court records on RK Consultants show that Durand Healing and Wellness Center, LLC submitted a list of creditors with the largest unsecured claims. According to it, the company’s largest unsecured creditors include business lenders, credit card issuers, and the U.S. Small Business Administration (SBA). The obligations are primarily tied to business financing, office leases, credit cards, office furniture, laptops, and neurofeedback equipment.
Some names on the list are Prestamos CDFI, LLC, Credibly of Arizona, LLC, and Expansion Capital Group.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
A summary of the Chapter 11 petition is shared here:
- Filing Date: July 28, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Arizona (Phoenix Division)
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 2:26-bk-07470
- Estimated Assets: Between $50,001 and $100,000
- Estimated Liabilities: Between $500,001 and $1 million
- Estimated Creditors: 1-49
- Reason for Filing: Reorganize finances under court supervision
A Wave of Chapter 11 Filings in the Industry
Financial pressures have taken a toll on a range of behavioral health and mental wellness providers across the country, prompting many to seek bankruptcy relief.
Atlantic Recovery Center, LLC submitted a Chapter 11 petition on July 7, 2026. Case records show the Florida-based residential mental health provider faced a financial gap. It currently offers individualized treatment under the business name Reign Residential Treatment Center.
A Sun Valley, California-based hospital operator filed for Chapter 11 proceedings on July 4, 2026. Court records showed that Pacifica of the Valley Corporation was authorized to use its debtor-in-possession financing to continue regular operations. It has been serving as a 231-bed acute care hospital for over 30 years.
A mental health and psychiatric healthcare provider from Arlington, Texas turned toward bankruptcy protection on June 23, 2026. The petition showed that North Texas Behavioral Clinic, LLC’s operating losses were more than the revenue generated. The company operates through multiple North Texas locations, serving patients of different ages.
On February 13, 2026, a mental health service provider based in Lincoln, Nebraska, sought Chapter 11 protection. Court filings showed the company was moving ahead as a small business debtor. Operations continued normally for the business under court supervision.
Access Ohio, LLC made a Chapter 11 filing on January 9, 2026 amid a large difference between its assets and liabilities. The court records indicated that the Columbus-based healthcare provider was aiming to reorganize its finances. The outpatient mental health organization serves from other locations spread across Ohio as well.
Future filings are expected to provide more insight into the company’s restructuring plans, financial outlook, alongside how the proceedings may affect its operations and creditors.
