Burts Construction, Inc.

Information for Creditors of Burts Construction, Inc.

Case Number 22-31700 in the United States Bankruptcy Court for the Southern District of Texas


Burts Construction, Inc. is a family-owned construction business that works on both commercial and residential projects. Burts specializes in concrete, civil work, and underground utilities, according to the company’s description on its Facebook page. The company is based in Harris County, with headquarters in Tomball, Texas.

The Debtor is 100% owned by Katherine Burts, who also serves as its CEO and President of the Board of Directors. Leonard Burts is the Secretary and Treasurer of the Debtor, while Brandon Burts serves as Vice President. The company also employs Kyle Burts.

More information about the company’s history, finances, and the circumstances leading to the filing of the bankruptcy case will be available to creditors at the required 341(a) meeting of creditors. The 341(a) meeting is mandated by bankruptcy law. The Debtor will have to send an individual knowledgeable about the company to that meeting to answer questions from the United States Trustee and any creditors who wish to attend. The meeting is scheduled for July 21st at 10:00am, and will be held by telephone.


At this point there is not a lot of public information in the bankruptcy case explaining why the Debtor’s finances have suffered after years in business, or why the bankruptcy was filed. However, there are some clues buried in the documents that have been filed so far. For example, the Debtor lists that it owes nearly $70,000 to one creditor on account of a default judgment. The company has also disclosed that it is currently involved in at least three open lawsuits. So, it is possible that litigation was a driver of the bankruptcy filing.

Additionally, Burts Construction stated in its bankruptcy papers that it had gross income of over $13.5 million in the year prior to the bankruptcy filing, but projects that it will receive only $150,000 per month during the case. This is a significant drop in revenue that is currently unexplained but may have caused the bankruptcy filing.

Finally, the Debtor has identified multiple contracts that it currently has but intends to reject in the bankruptcy. It is possible that Burts filed the bankruptcy case in order to get out of a bad deal with minimal repercussions.


Since there are still several unknowns regarding the circumstances that caused the bankruptcy and the Debtor’s finances, it is hard to say how creditors will fare in the case. However, it is clear that Burts Construction has several large creditors who are owed tens of thousands of dollars each.

When small businesses are owed such large receivables, it can be difficult to determine if the pain of writing off or the pain of collecting is larger. Bankruptcy law offers some protections for these creditors. One such protection is a committee of unsecured creditors.

If creditors elect to form a committee, that committee would then advocate for the rights of all unsecured creditors. The committee would be entitled to hire counsel, which would be paid for by the debtor after court approval. So, the unsecured creditors would not pay the lawyers themselves. Committees therefore allow unsecured creditors to push for repayment of open receivables without having to come out of pocket for the legal fees involved. If you have questions about the Burts Construction bankruptcy or committees generally, please contact PRLT for a no obligation consultation.

PRLT does not represent Burts Construction, Inc. or any of its affiliates. The content on this page is provided for informational purposes only. Nothing on this page or this website creates an attorney/client relationship between you and PRLT. Nothing on this page is legal advice. If you have any questions about the Burts Construction bankruptcy case or anything discussed on this page, please contact us.

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