Sheffield Towing Service LLC, a tow-and-recovery outfit that has become a familiar sight along West Texas highways, has put itself under Chapter 11 protection after a deadly crash in El Paso set off a wave of litigation. The company says it plans to reorganize under court supervision while keeping its trucks on the road and using the bankruptcy process to sort out creditor claims.
Court records list the case as number 26-70004-sm and show the voluntary petition was filed on Jan. 2, 2026. Sheffield Towing elected to proceed under Subchapter V of Chapter 11 and retained attorney Herbert C. Shelton II of Hayward PLLC, according to Inforuptcy.
What the filing says about the money
In its petition, the company reports aggregate noncontingent liquidated debts of less than $3,424,000 and estimates both its assets and its liabilities in the $1 million to $10 million range. Sheffield Towing says it owes roughly 49 creditors and has filed a list of its 20 largest unsecured creditors, according to figures reported by San Angelo LIVE!.
A related entity, WE West Texas Towco LLC, filed its own Chapter 11 petition the same day. Bankruptcy Observer lists that companion case as 26-70003, with both filings pending in the U.S. Bankruptcy Court for the Western District of Texas.
Why the bankruptcy came now
The Chapter 11 move comes in the shadow of lawsuits tied to a May 8, 2025, tow-truck crash on Transmountain Drive in El Paso that left one man dead and several people injured. Plaintiffs have filed wrongful-death and injury suits accusing the company of negligence and seeking damages, including at least one complaint that demands more than $1 million, as reported by KVIA.
What Subchapter V means for the company
Subchapter V is a streamlined track within Chapter 11 designed for qualifying small-business debtors. It typically speeds up deadlines for filing a plan, trims certain procedural costs, and brings in a trustee whose job includes helping hammer out a deal with creditors. The U.S. Trustee Program says the option is meant to make reorganizations quicker and less expensive for eligible businesses while still allowing them to remain in possession of their assets, according to the U.S. Trustee Program.
Company footprint and local impact
Sheffield Towing has touted more than a decade of towing and recovery work across West Texas, advertising light-, medium-, and heavy-duty towing, roadside assistance, and accident recovery. It lists dispatch points in Sheffield and San Angelo, along with service areas and 24/7 dispatch contacts, on its website, according to Sheffield Towing.
Next steps in the case
The court docket sets an early April deadline for Sheffield Towing to file a Subchapter V plan and includes first-day filings such as the voluntary petition and required declarations. The listing for the case shows a plan due by April 2, 2026, and notes the initial filing fee payment, according to Inforuptcy.
Plaintiffs’ lawyers have made clear they are not backing off. “Aldo Jenkins is dead, and his family left devastated,” the family’s counsel writes on its website, adding that the firm plans to pursue full civil remedies, as described by Kherkher Garcia LLP.
For customers, vendors, and small communities that depend on heavy-wrecker service in remote stretches of West Texas, the Chapter 11 filing naturally raises questions about whether help will still show up when a rig breaks down on the side of the highway. The company insists it will keep operating while the case moves forward. Observers say the real test will be whether Sheffield Towing can corral its litigation exposure and craft a reorganization plan that wins over creditors, as noted by WhatNow.
