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Spotts Fain regularly practices in the fields of bankruptcy, insolvency and debtor/creditor law. Our attorneys are admitted in the Virginia state, federal, and bankruptcy courts, and we represent clients in proceedings throughout the Commonwealth and beyond.

We prosecute contested suits to determine liability and emphasize complex and commercial judgment recovery. Our firm is experienced in defending creditors against claims arising under a host of federal and state laws, including consumer protection and lender liability suits.

In addition to federal and state litigation, a significant portion of our practice involves out of court workouts and reorganizations of troubled entities on behalf of creditors and debtors. Our most recent experience in restructurings includes the energy, health care, agricultural and real estate fields, with a focus on maximizing value to all stakeholders.

We frequently represent secured creditors in foreclosing on real and personal property. In particular, we handle cases relating to the purchase and sale of businesses as a going concern. We regularly work on state court receiverships and assignments for the benefit of creditors. We also have extensive experience in agricultural lending and recovery, including Chapter 12 bankruptcy proceedings.

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.

Our clients include:

  • Fortune 50 banks
  • Regional banks
  • Community banks
  • Asset-based lenders and lessors
  • Bankruptcy trustees
  • Local businesses
  • Agricultural lenders and farmers
  • Manufacturers
  • Real estate investors
  • Private individuals

Spotts Fain is a member of, and an active participant in, the Virginia Association of Community Banks and the Virginia Bankers Association.

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