Balkan Express Bankruptcy: What It Means for Texas Truck Drivers and Creditors

When a Trucking Company Files for Bankruptcy After a Lawsuit — What Comes Next?

The recent Chapter 11 bankruptcy filing by Balkan Express and its sister company Balkan Logistics has sent shockwaves through the Texas trucking industry. With 166 drivers, 170 trucks, and operations spanning 48 states, this Fort Worth-based dry van carrier’s financial collapse raises urgent questions for employees, creditors, and the broader freight community.

At Attorney911, we’ve seen this pattern before. Trucking companies facing lawsuits often turn to bankruptcy as a last-ditch effort to reorganize debt and avoid accountability. But what does this mean for the drivers who depend on these companies for their livelihood? What happens to the millions owed to creditors? And how can affected parties protect their rights?

Let’s break down the facts, the legal implications, and what comes next.

Why Trucking Companies File for Bankruptcy After Lawsuits

The Bankruptcy Playbook: How Trucking Companies Use Chapter 11

When a trucking company faces a major lawsuit, bankruptcy can serve multiple purposes:

1. Automatic Stay: The moment a bankruptcy petition is filed, an automatic stay goes into effect. This halts all collection actions, including lawsuits, wage garnishments, and creditor demands. For Balkan Express, this means M&T Capital’s lawsuit is effectively frozen while the bankruptcy plays out.

2. Debt Reorganization: Chapter 11 allows companies to restructure debt while continuing operations. Balkan Express is seeking to reorganize its $22 million in debt — which likely includes not just the M&T Capital loan, but also unpaid fuel bills, maintenance costs, insurance premiums, and other operational expenses.

3. Asset Protection: Bankruptcy can shield company assets from creditors. While this protects the company, it often leaves creditors and employees holding the bag.

4. Avoiding Accountability: In some cases, bankruptcy is used to delay or reduce liability from lawsuits. If Balkan Express had other pending claims (personal injury, cargo loss, or regulatory violations), those could be wrapped into the bankruptcy and settled for pennies on the dollar.

The Dark Side: When Bankruptcy Becomes a Weapon

While Chapter 11 is designed to give struggling companies a fresh start, it can also be weaponized to avoid responsibility. We’ve seen cases where trucking companies:

• Hide assets through shell companies or related-party transactions
• Delay payments to drivers and vendors for months or years
• Settle lawsuits for far less than they’re worth
• Emerge from bankruptcy only to repeat the same mistakes

Daniel Ivandic’s statement that “there is no risk to our driver’s jobs” should be taken with caution. While the company claims it will continue operating, history tells a different story.

Just last year, 500 Texas truckers were fired en masse when a logistics company abruptly shuttered. Many were left without paychecks, benefits, or severance. If Balkan Express’s reorganization fails, its drivers could face the same fate.

What This Means for Creditors: M&T Capital and Beyond

The $4.2 Million Lawsuit: What Happens Next?

M&T Capital’s lawsuit against Balkan Express is now frozen due to the automatic stay. But that doesn’t mean the debt disappears.

Where Creditors Stand in Bankruptcy

M&T Capital falls into the general unsecured creditor category. Unless they have a secured interest in Balkan Express’s assets (like a lien on trucks or real estate), they’re at the back of the line.

Can Creditors Fight Back?

Yes — but it’s an uphill battle. Creditors have options:

1. File a Proof of Claim
   – Creditors must file a proof of claim in bankruptcy court to assert their rights.
   – Deadlines are strict — miss it, and you lose your chance to recover.

2. Challenge the Bankruptcy
   – If the bankruptcy was filed in bad faith (to avoid a lawsuit, for example), creditors can ask the court to dismiss the case.
   – This is difficult to prove but not impossible.

3. Push for a Chapter 7 Liquidation
   – If the company is insolvent, creditors can argue that Chapter 7 (liquidation) is more appropriate than Chapter 11.
   – This would force the sale of assets to pay creditors.

4. Negotiate a Settlement
   – Some creditors cut deals with the bankrupt company to recover a portion of their debt in exchange for dropping objections.

At Attorney911, we’ve represented creditors in trucking bankruptcies. The key is acting fast — the longer you wait, the less leverage you have.

Legal Options for Affected Parties

For Drivers: Protecting Your Rights

If you’re a Balkan Express driver, time is of the essence. Here’s what you can do:

1. File a Wage Claim in Bankruptcy Court

• The deadline to file a claim is set by the court — usually 90 days after the first creditors’ meeting.
• You’ll need to submit proof of unpaid wages (pay stubs, timecards, bank records).
• Priority status means you’ll get paid before general creditors — but only up to $15,150.

2. Consult an Employment Attorney

• If you’re owed more than $15,150, an attorney can help you challenge the priority limit.
• If you were misclassified as an independent contractor, you may have additional claims for unpaid benefits and overtime.

3. Apply for Unemployment Benefits

• If you’re laid off, apply immediately through the Texas Workforce Commission.
• Even if Balkan Express continues operating, prepare for the worst.

4. Explore Legal Action Against Owners (If Applicable)

• In some cases, company owners can be held personally liable for unpaid wages.
• This is rare but possible if fraud or misconduct is involved.

Ralph Manginello’s Advice:
“Truck drivers are the backbone of this industry, but they’re often the last to get paid when a company collapses. If you’re a Balkan Express driver, don’t assume your job is safe just because the company says so. Document everything, consult an attorney, and be ready to act if things go south.”

FMCSA Regulations: Did Balkan Express Violate the Rules?

Bankruptcy doesn’t erase regulatory violations. If Balkan Express was cutting corners on safety, those violations could still come back to haunt them — and their creditors.

Key FMCSA Regulations That May Apply

The Role of CSA Scores in Bankruptcy

The FMCSA’s Compliance, Safety, Accountability (CSA) program tracks carrier safety performance. If Balkan Express had poor CSA scores, it could indicate:

• Systemic safety violations (HOS, maintenance, driver qualification)
• A culture of cutting corners to save money
• Higher risk of accidents (which could lead to personal injury lawsuits)

Why This Matters for Creditors:
If Balkan Express had outstanding FMCSA violations, those could be prioritized in bankruptcy. The government may have a super-priority claim for fines and penalties.

Why This Matters for Drivers:
If the company was pressuring drivers to violate HOS rules or ignoring maintenance, those practices could have contributed to the financial collapse — and put drivers at risk.

What Comes Next for Balkan Express?

The Bankruptcy Timeline: Key Milestones

Possible Outcomes

1. Successful Reorganization
   – Balkan Express restructures its debt, secures new financing, and continues operating.
   – Drivers keep their jobs, creditors get partial repayment.
   – Risk: The company may emerge weaker, leading to future layoffs or wage cuts.

2. Conversion to Chapter 7 (Liquidation)
   – If reorganization fails, the company sells its assets (trucks, terminals, real estate).
   – Drivers are laid off, creditors get pennies on the dollar.
   – Most likely outcome if cash flow doesn’t improve.

3. Acquisition by Another Carrier
   – A larger trucking company (like J.B. Hunt, Schneider, or Werner) may buy Balkan Express’s assets.
   – Some drivers may be hired by the new owner, but many will be let go.
   – Example: When Celadon collapsed, its trucks were sold to other carriers, but most drivers were not rehired.

4. Liquidation Without Bankruptcy
   – If the company can’t secure financing, it may shut down immediately.
   – Drivers are fired without notice, creditors get nothing.
   – This is what happened to the 500 Texas truckers who lost their jobs last year.

For Texas Creditors: Protecting Your Interests

If you’re a vendor, supplier, or lender doing business with Texas trucking companies, Balkan Express’s bankruptcy is a wake-up call.

Key Risks for Texas Creditors:

• Unpaid Invoices: Many carriers delay payments when cash flow tightens.
• Bankruptcy Filings: If a carrier files for bankruptcy, you may never get paid.
• Asset Stripping: Some companies sell off assets before filing, leaving creditors with nothing.

What Texas Creditors Should Do Now:

✅ Run Credit Checks — Before extending credit, check a carrier’s financial health.
✅ Require Personal Guarantees — If possible, get owners to personally guarantee debts.
✅ Monitor FMCSA Compliance — Carriers with poor CSA scores are higher bankruptcy risks.
✅ Act Fast in Bankruptcy — If a carrier files, file your claim immediately.

Lupe Peña’s Insight for Creditors:
“I’ve seen it from both sides — as an insurance defense attorney and now as a plaintiff’s lawyer. Creditors often assume they have no leverage in bankruptcy, but that’s not true. The key is acting early. If you wait until the bankruptcy plan is approved, it’s usually too late. File your claim, attend the creditors’ meeting, and don’t be afraid to challenge the company’s numbers.”

How Attorney911 Can Help

If you’re a Balkan Express driver, creditor, or anyone affected by this bankruptcy, you don’t have to navigate this alone. At Attorney911, we specialize in trucking industry litigation, including:

🔹 Wage Claims in Bankruptcy — Helping drivers recover unpaid wages.
🔹 Creditor Rights — Fighting for vendors, suppliers, and lenders in bankruptcy court.
🔹 Employment Law — Protecting drivers from wrongful termination and misclassification.
🔹 FMCSA Compliance — Ensuring carriers follow safety regulations.
🔹 Personal Injury Claims — Holding negligent trucking companies accountable.

Why Choose Attorney911?

✅ 25+ Years of Experience — Ralph Manginello has been fighting for trucking accident victims and industry workers since 1998.
✅ Former Insurance Defense Attorney — Lupe Peña knows exactly how insurers and bankrupt companies operate — and how to beat them.
✅ Proven Results — We’ve recovered millions for clients in trucking cases.
✅ No Fee Unless We Win — You pay nothing upfront — we only get paid if we win your case.

Don’t Wait — Your Rights Are at Stake

The trucking industry is tough, but that doesn’t mean you should be left behind. Whether you’re fighting for unpaid wages, recovering a debt, or protecting your job, Attorney911 is here to help.

Call 1-888-ATTY-911 today — before the money runs out.

This is not legal advice. Every case is unique. Consult an attorney for your specific situation.