Direct Builders, Inc. has initiated a Chapter 7 bankruptcy process. Court records do not specify the reasons that may have prompted the filing by the home improvement and remodeling company.
Note: Chapter 7 bankruptcy generally involves the liquidation of a debtor’s eligible assets to help pay creditors. A court-appointed trustee may take control of eligible assets and manage their sale and distribution to creditors. For more information, readers are encouraged to contact the business directly.
Direct Builders, Inc. Enters Bankruptcy
Court records show that the company filed for Chapter 7 on August 24, 2026. Company president Hector Cruz signed the petition.
The proceedings are currently being handled in the U.S. Bankruptcy Court for the Central District of California.
Court records on PACER show that the assets and liabilities of Direct Builders, Inc. are currently estimated to be in the same range. This suggests that the company does not face a financial gap. However, the records note that once the administrative charges are handled, no funds will be available for the creditors with unsecured claims.
A summary of the Chapter 7 petition is provided here:
- Filing Date: August 24, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Central District of California
- Type of Filing: Active, Voluntary Petition
- Chapter: 7
- Case Number: 2:26-bk-18506-BB
- Estimated Assets: Between $500,001 and $1 million
- Estimated Liabilities: Between $500,001 and $1 million
- Estimated Creditors: 1-49
About the Company
Direct Builders, Inc. operates as a home improvement company, providing a wide range of services for residential properties. The offerings are mainly related to renovation, upgrade, and repair categories.
The company website lists several services, including roofing, HVAC upgrades, hardscaping, insulation, window replacement, landscaping, kitchen remodeling, concrete, and paver installations. The website also mentions an in-house team that bears home improvement experience and handles projects through different stages.
As the case progresses, court rulings are expected to determine how Direct Builders, Inc.’s assets and obligations are handled.
