Creditors' Rights, Bankruptcy and Insolvency

Commercial Bankruptcy Legal Services

Spotts Fain represents secured and unsecured creditors, debtors, creditors' committees and private individuals in commercial bankruptcy proceedings. In Chapter 11 proceedings, we represent parties on issues related to first day motions, cash collateral issues, relief from stay proceedings, valuation litigation and plan confirmation.

We regularly represent chapter 7 trustees on matters such as asset sales, lien avoidance, preference actions and related issues. We have experience in filing and litigating involuntary bankruptcy petitions to ensure equal treatment of all creditors and the avoidance of fraudulent or preferential conveyances from the debtor.

Workouts and Reorganizations

Spotts Fain is often engaged in negotiating and documenting out of court workouts and reorganizations, particularly for secured lenders. We assist lenders in a detailed analysis of the debtor's business, the enforceability of loan documents, the existence and perfection of security interests, available remedies and the existence of any potential lender liability claims or other obligor defenses. Thereafter, we work closely with the lender to negotiate and document the appropriate workout agreements and assist in resolving any post workout defaults.

Creditor Litigation

Spotts Fain represents clients in connection with litigating and collecting sums due to creditors. We have represented numerous parties in litigation of contested and uncontested actions seeking to obtain a money judgment, as well as actions seeking extraordinary relief, such as appointment of receivers, injunctions and executions on property prior to trial.

Spotts Fain also represents judgment creditors in their efforts to collect on their money judgments. These efforts involve all aspects of collection, including the utilization of complex collection efforts such as creditor's bills to enforce liens, obtaining and enforcing charging orders against interests in limited liability companies and partnerships, issuance of and execution on writs of fieri facias, conducting debtor interrogatories, and issuing and litigating uncontested and contested garnishments.

In addition to providing representation in litigation related to collection efforts, Spotts Fain provides representation to creditors in lender liability matters. This representation includes tort claims, contract actions, and suits alleging violations of state and federal laws and statutes, including the Truth-in-Lending Act, Fair Debt Collection Practices Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Equal Credit Opportunity Act and Virginia Consumer Protection Act, whether brought in state or federal court.

We frequently serve as local counsel in Virginia state courts and federal courts, working directly with clients or with outside counsel for clients in other states.