8.1 Introduction

• Library: Enforcement of Liens and Judgments in Virginia (Virginia CLE) (2019 Ed.)

8.1 INTRODUCTION

Congress has the ability to place the federal government first in any competition for funds. The common law tradition and early federal legislation demonstrate the desire to place the "King" (the federal government) at the head of the creditor line. Although this tradition has not been blindly followed by Congress or the courts, the special provisions for the United States as a creditor are significant, and attorneys who advise creditors competing with the federal government for scarce resources must be aware of them.

This chapter discusses two specific provisions that apply to situations in which the United States competes as a creditor. The first of these provisions is the federal insolvency statute. ¹ This statute, with antecedents dating back to the beginning of the United States, contains sweeping language that places the...