A Southern California trucking company, Victory Freight Corp., filed for Chapter 7 bankruptcy on July 2, citing a multimillion dollar claim as a liability in a pending legal case.
Victory Freight Corp. listed unsecured creditor Raul Contreras as having a nearly $3.1 million claim but also reported that the money is in dispute, according to the bankruptcy petition.
The legal case involves an Aug. 8, 2024, highway crash in Fontana, California, in which a commercial truck crashed into a vehicle driven by Contreras, causing significant damage to the automobile and significant injuries to the victim, according to a June 2025 complaint.
The trucking business has denied the claims in the complaint, which include alleged negligence. According to the complaint, Victory Freight employed the truck driver and owned the truck. The case is ongoing in San Bernardino Superior Court.
The carrier reported less than $1 in assets and $3.2 million in liabilities, primarily due to the lawsuit.
The business also reported related trucking businesses, Isaiah Transportation and Trans Bay Logistics, were also undergoing Chapter 7 bankruptcies. Chapter 7 bankruptcies primarily seek to liquidate assets to pay unsecured creditors, according to the U.S. Courts.
In the May bankruptcy filing for Isaiah Transportation, the business reported less than $1 in assets and over $769,000 in liabilities. The June filing for Trans Bay Logistics reported $3.69 in assets and nearly $3.4 million in liabilities, repeating the Contreras claim under dispute.
Victory Freight had five power units and four drivers as of April 2025, according to a federal database. Trans Bay Logistics, located in San Bernardino, and Connecticut-based Isaiah Transportation both reported having two power units and two drivers in the past, according to FMCSA records.
