Our attorneys represent banks and other creditors in connection with bankruptcy matters. We are familiar with all types of relief available in the bankruptcy code including, but not limited to, liquidation and debt adjustment. We carefully review remedies and strategies available to creditors including preparing and filing proof of claims, examining debtors, challenging discharge, objecting to disclosure statements, pursuing cash collateral, moving for relief from stay, or other petitions. We are fully familiar with the implications of the Fair Debt Collection Practices Act and the Domestic Relations Claim as they relate to bankruptcy and are careful to advise our clients of confirmation issues and strategies. We uphold the highest ethical standards for creditors and bankruptcy clients. Our attorneys are also involved in representing individuals, companies and partnerships in filing bankruptcy petitions which include pre-bankruptcy planning and “work out” considerations. If your bills have spiraled out of control, and creditors are constantly calling you, we can review your financial situation to determine whether it would be best for you to seek the protection of the bankruptcy laws. While bankruptcy is not recommended or appropriate for everyone, it can provide a fresh start for families and individuals who are currently unable to meet their financial obligations. Our attorneys can meet with you to explain your options and perhaps work with your creditors to find the less drastic solutions.  We can assist with any chapter filings, including Chapter 5, 7, 11 or 13, and regularly represent borrowers, lenders and debtor in all sorts of debt restructures. We are familiar with all types of relief available in the bankruptcy code.

  • Debt Management & Negotiations
  • Planning & Filing Bankruptcy
  • Bankruptcy Litigation
  • Creditors Rights

Debt Management & Negotiations

Whether you own a small business rebounding from the downturn in the economy or you are recovering from being unemployed, bankruptcy may not be your only option.

Our attorneys can help you:

  • Understand your income and expenses
  • Recognize which expenses are impacting your ability to pay debts
  • Identify solutions to lesson problem areas and corresponding debts
  • Negotiate directly with creditors to reduce debt to exchange for lump sum payments or long-term payment plans

We have successfully resolved cases in United States District Courts, as well as various State courts in Virginia, through negotiated lump sum payments or long-term repayment plans in disputes ranging from a few thousand dollars to hundreds of thousand dollars.

Our thorough knowledge of post-judgment collection practices allows our attorneys the advantage of using these collection efforts to help facilitate negotiations with creditors.

Our attorneys will develop a sound strategy to help you reach your desired goals.

Planning & Filing Bankruptcy

Our attorneys will assist in the selection of the appropriate bankruptcy chapter, help you identify and protect assets and utilize exemptions to maximize the benefit and outcome of your case. 

Bankruptcy cases are traditionally identified by the chapters that describe them. 

A Chapter 5 permits business debtors and certain individuals with debts below $2.75 million to reorganize their obligations under Chapter 11 without needing to obtain consent from a class of "impaired" debtors, as required under basic Chapter 11. It also relaxes some of the rules for administration so certain debtors may benefit. 

Chapter 7 is a liquidation of the non-exempt assets of the debtor’s estate, which is supervised by the bankruptcy court. A Trustee is appointed by the bankruptcy court to:

  • Take possession of any non-exempt assets of the debtor’s estate,
  • Reduce the non-exempt assets to cash, and
  • Make distributions to creditors.

This liquidation process is subject to the debtor’s right to retain certain exempt property and the rights of secured creditors.  In most Chapter 7 cases, there is little or no nonexempt property and there is no actual liquidation of the debtor’s assets. 

Chapter 13 is designed for an individual debtor who has a regular source of income and valuable assets, which the debtor desires to retain.

A Chapter 13 allows a debtor to:

  • Keep assets; and
  • Repay creditors over time.

Debtors who do not qualify for Chapter 7 relief as a result of the means test, must pay all of their disposable income into the Chapter 13 plan (typically five (5) years). 

The debtor must complete the payments required under the plan before receiving a discharge. However, during the plan a debtor is protected from all collection efforts and other creditor actions.

Chapter 11, is a reorganization of debts by a corporation or individual who desires to continue operating a business and repay creditors concurrently through a court-approved plan of reorganization.

A Chapter 11 requires the debtor to:

  • File a plan of reorganization; and
  • Must provide creditors with a disclosure statement containing information adequate to enable creditors to evaluate the plan.

The court ultimately confirms or denies confirmation of the plan of reorganization. 

The purpose of a Chapter 11, is to allow the debtor to go through a period of consolidation and emerge with a reduced debt load and a reorganized business. 

Our attorneys will work with you to identify and evaluate the benefits of each chapter to determine which is the most beneficial to you given your current financial situation.

Bankruptcy Litigation

Our attorneys are well versed in the bankruptcy litigation practice whether it is prosecuting or defending complaints to determine dischargeability, challenging the discharge debts or handling other adversary complaints.

In some cases, the filing of the bankruptcy petition can result in additional litigation to determine whether a debtor’s bankruptcy case should be dismissed without a discharge or whether a specific creditor’s debt should be determined to be non-dischargeable. If successful, both of these types of cases can have far reaching implications for the debtors involved. Recognizing the facts required to successfully prosecute a complaint to determine dischargeability or defending against such a complaint is complicated. As litigation attorneys, we have both a wealth of trial experience and have prosecuted and defended such actions in the bankruptcy context. 

Bankruptcy cases also spin off other types of litigation. Our attorneys are well versed in defending fraudulent transfer and preference actions. A fraudulent transfer is the transfer of an asset made by a debtor in an attempt to avoid a creditor’s collection efforts. A preference action is initiated by a trustee of a bankruptcy estate or a debtor in possession and is brought in an effort to recover payments made by the debtor to a creditor prior to the filing of the bankruptcy petition. In certain instances, payments made to creditors for antecedent debts within 90 days of filing bankruptcy are considered preferences. If the creditor is also an insider, the relevant preferential period extends to one year. If the amount of the preferential payment received by the creditor exceeds the amount a creditor would have received in a liquidation of the debtor’s bankruptcy estate, the creditor may have to disgorge the amount of the preferential payment for the benefit of all of the debtor’s creditors. 

Our attorneys also have experience modifying and stripping liens in both Chapter 7 and 13 cases which require the filing of adversary complaints in some instances. Being experienced bankruptcy litigators allows our attorneys to handle the simple cases as well as those that are multifaceted.

Creditors Rights

Our attorneys can protect your rights as a creditor in a bankruptcy case by obtaining relief from the automatic stay, filing a proof of claim or monitoring bankruptcy cases for creditors seeking distribution from a bankruptcy estate. 

The threat of bankruptcy is regularly used as leverage during negotiations with creditors. We can evaluate the legitimacy of those bankruptcy threats to provide you with an ability to calculate the likelihood of filing and the practical outcome if there is a bankruptcy filing. Having the ability to effectively refute the perceived threat of bankruptcy will certainly strengthen your position in negotiations. 

Understanding your rights as a creditor once a bankruptcy has been filed can be overwhelming. Our attorneys can guide creditors through the bankruptcy proceedings whether as a secured or unsecured creditor. Evaluating the appropriate steps in protecting your rights as a creditor in a bankruptcy case must be conducted simultaneously with an analysis of the cost. With the ever present threat of a discharge of your claims, a creditor must be weary of spending resources which will not result in a positive return. A comprehensive understanding of the bankruptcy practice allows us to provide you with quality representation for a fraction of the costs of larger firms. 

Our attorneys can simplify and explain the complex bankruptcy litigation practice whether you need someone to:

  • Obtain a cash collateral order;
  • Object to plan confirmation;
  • Obtain relief from the automatic stay;
  • Defend fraudulent conveyance and preference actions; or
  • File a proof of claim.

Our goal is to maximize the value of your dollar while effectively protecting your rights.

As creditors rights counsel, we can assist and represent creditor committees, secured lenders, unsecured creditors and receivers in all types of debt restructuring, litigation, bankruptcy organization and out-of-court workouts.  Lenders of all types seek our guidance and advise on troubled business loans and distressed debt ranging from real estate financing to lines of credit.  Our goal, in the most practical way, is to solve problems and resolve conflicts.  Our attorneys focus on the representation of creditors in matters involving SBA loans, complex loan workouts, special asset recoveries, contested foreclosures, credit defense in preference and fraudulent transfer cases, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.  We undertake and defend commercial litigation involving creditors rights, lender liability and other matters.  We protect our clients’ rights and maximize their recovery by offering a full spectrum of legal services.  If necessary, we will pursue all available remedies at our disposal against those parties responsible for, or who contributed to, the lenders loss.

Contact Mahdavi, Bacon, Halfhill & Young, PLLC For More Information

In an effort to support the best interests of our clients, we offer competitive fees. Call 703-352-1300 or contact our firm to learn more about how our DC Metro business law lawyers will personally tailor our services to your needs.

DebtRelief Agency
The attorneys at Mahdavi, Bacon, Halfhill & Young, PLLC, provide bankruptcy services to consumers and federal law requires that they be identified as a Debt Relief Agency. Our attorneys help people file bankruptcy in Virginia under the United States Bankruptcy Code.