West Texas Towing Company Files for Chapter 11 Bankruptcy

By Lucas Banda, Jan 5, 2026

SAN ANGELO,TX — Sheffield Towing Service, LLC has filed for voluntary Chapter 11 bankruptcy, according to federal court records, following litigation tied to a 12-vehicle crash in El Paso last year.

Court filings show the Texas-based towing company submitted a Chapter 11 petition on Jan. 2, 2026, in the U.S. Bankruptcy Court for the Western District of Texas. The filing comes months after the company became the subject of multiple lawsuits connected to a May 2025 semi crash that killed a 65-year-old man.

According to records available through PACER, Sheffield Towing Service reported noncontingent liquidated debts of less than $3.42 million. The company listed estimated assets between $1 million and $10 million, with liabilities in the same range.

The company elected to proceed under Subchapter V of Chapter 11, which applies to small business debtors seeking to reorganize while continuing operations. Court documents state the bankruptcy filing is intended to allow the company to reorganize under court supervision.

The bankruptcy follows a wrongful death lawsuit filed by the victim’s son, as well as a separate civil suit seeking more than $1 million in damages for medical expenses, lost income, and emotional suffering. The crash occurred May 8, 2025, according to reporting by KFOX14.

Sheffield Towing Service reported owing approximately 49 creditors, court documents show. Funds are expected to be available for distribution to unsecured creditors, and filings include a list of the company’s 20 largest unsecured creditors.

An affiliated entity, WE West Texas Towco LLC, also filed a bankruptcy petition on Jan. 2, 2026, according to court records.

Sheffield Towing Service has operated in West Texas for more than a decade, providing light-, medium-, and heavy-duty towing and recovery services across multiple communities, including San Angelo, Mertzon, Ozona, Sonora, Big Lake, and McCamey.

The Chapter 11 process will determine whether the company can resolve its litigation-related liabilities and stabilize its business while remaining operational.