FORT WORTH, Texas (October 2025) — Village Homes, a leading Fort Worth homebuilder, has filed for Chapter 11 bankruptcy protection following a year-long legal dispute with Dallas-based Olerio Homes. The builder emphasized that it remains financially stable and continues operations across its Fort Worth communities.
Background: Collapsed Land and Branding Deal
In 2024, Village Homes agreed to sell about 100 vacant Fort Worth lots and its “Village Homes” brand name to Olerio Homes as part of a rebranding linked to the retirement of one of its founding partners (Fort Worth Business Press, 2025).
The deal collapsed when Olerio failed to secure financing despite a $300,000 deposit. Village Homes terminated the agreement and filed suit in Texas state court to confirm the termination’s validity.
Olerio countersued, claiming wrongful termination and seeking both damages and control of the disputed properties (The Real Deal – Texas, 2025).
In May 2025, Olerio filed lis pendens notices on all 100 lots—clouding titles and stalling Village’s ability to sell or develop land. A judge denied Village’s request to remove those notices in August, effectively freezing its development pipeline (Bankruptcy Court Docket, Case No. 25-43782).
This legal gridlock ultimately led the company to seek Chapter 11 protection to preserve its brand and operations in the Fort Worth market.
Chapter 11 Filing and Strategy
Village Homes, L.P. filed its Chapter 11 petition on October 1, 2025, in the U.S. Bankruptcy Court for the Northern District of Texas (Fort Worth Division), Case No. 4:25-bk-43782, presided over by Judge Mark X. Mullin.
Company co-founder Michael Dike described the move as a proactive step to safeguard the business while resolving the Olerio dispute.
“This is not a decision we take lightly,” Dike said. “The legal battle has materially impeded our operations. Chapter 11 allows us to protect our value and continue building homes for Fort Worth families.”
Dike emphasized that the case was not lender-driven and that Village remains a viable, profitable builder. The company’s plan is to repay all allowed creditor claims in full, with no debt haircut or liquidation.
During the reorganization, Village Homes continues operations as a debtor-in-possession, maintaining control of its construction, sales, and warranty processes under court supervision.
Bankruptcy Case Details
- Filing Date: October 1, 2025
- Case Number: 4:25-bk-43782, U.S. Bankruptcy Court (N.D. Texas, Fort Worth Division)
- Judge: Mark X. Mullin
- First-Day Motions: Requests to maintain credit lines, continue vendor payments, and use cash collateral to fund active Fort Worth home projects.
- First Hearing: October 15, 2025, at 1:30 PM, Fort Worth courthouse.
- Creditors’ Meeting (341): Scheduled for November 10, 2025.
- Claim Deadlines: February 8, 2026 (general); March 30, 2026 (government).
The company also filed an adversary proceeding against Olerio within the bankruptcy, bringing the dispute under federal jurisdiction.
Impact on Clients and Vendors
Village Homes has made clear that construction, sales, and warranty operations in Fort Worth and surrounding communities will continue without interruption.
From the company’s official client Q&A (Village Homes Communications, 2025):
- Construction and Closings Continue. Active builds and pending closings remain on schedule. Buyers will be notified directly if any timing adjustments occur.
- Home Warranties Stay Valid. Warranty protection and claims processing remain unchanged.
- Vendors Paid in Full. Subcontractors and trade partners continue to be paid under existing terms.
The Chapter 11 filing is a protective measure, not a signal of insolvency. Village’s goal is to emerge quickly from reorganization with its projects, reputation, and customer confidence intact.
What It Means for Fort Worth Real Estate
The Fort Worth housing market continues to perform strongly in 2025, and Village Homes remains an established name in its west-side neighborhoods and master-planned communities. The Chapter 11 case underscores how legal and branding disputes—not financial instability—can disrupt even long-standing regional builders.
Local industry analysts expect Village’s reorganization to conclude smoothly, allowing the company to resume full activity across its Fort Worth subdivisions by mid-2026 (The Real Deal – Texas, 2025).
Sources:
- Village Homes Press Release (via Fort Worth Business Press), October 2025.
- The Real Deal – Texas Real Estate News, September–October 2025.
- Bankruptcy Court Docket, Case No. 25-43782, N.D. Texas.
- Village Homes Client Q&A, October 2025.
We’ve answered some of the most common questions Fort Worth homebuyers are asking about Village Homes’ Chapter 11 filing.
Frequently Asked Questions — Village Homes Chapter 11 (Fort Worth, TX)
Is Village Homes still building and closing homes during Chapter 11?
Yes. Village Homes confirmed that home construction and scheduled closings in Fort Worth are continuing as planned during the Chapter 11 reorganization. Any project timeline changes will be communicated directly to affected buyers.
Are Village Homes warranties still valid?
Absolutely. All home warranties remain fully valid. The Chapter 11 filing does not cancel or reduce warranty coverage or affect the claims process for Fort Worth homeowners.
Will Village Homes continue paying its subcontractors and trade partners?
Yes. Village Homes is continuing to pay all vendors, subcontractors, and trade partners in full. The company’s reorganization plan provides for full repayment of allowed creditor claims, ensuring that work on homes remains uninterrupted.
Why did Village Homes file for Chapter 11 in Fort Worth?
The filing is a strategic, proactive step to protect the business while resolving a legal dispute with Dallas-based Olerio Homes. It allows Village Homes to maintain operations under the supervision of the U.S. Bankruptcy Court for the Northern District of Texas (Fort Worth Division).
How does the Chapter 11 filing affect Fort Worth homebuyers?
For current buyers, it should have little to no impact. Village Homes continues building, selling, and closing homes as usual, while also honoring all warranties and service commitments.
