Northern Virginia Auto Body Shop With 30-Year History Hits Chapter 11 Bankruptcy

Val Collision LLC filed for Chapter 11 bankruptcy with nearly $1.93 million in unsecured debt.

Written By Twinkle Jha
Representative Image, Val Collision LLC files for bankruptcy (Image credit: Erik Mclean | Pexels | Created on Canva))

Falls Church, VA-based Val Collision LLC has formally sought bankruptcy protection. The decision comes as the collision repair industry continues to face financial pressures, pushing several companies toward restructuring.

Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts, restructure obligations, and continue operating while working toward financial stability. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.

Val Collision LLC Files for Chapter 11

The company submitted its petition on August 10, 2026, as per the latest case records available on PACER. Authorized representative and owner Eddison Flores signed the petition prior to filing.

The records add that Val Collision LLC is a small business debtor. In addition, it has decided to proceed using a Subchapter V filing to handle the case requirements in a streamlined manner.

Attorney Richard G. Hall is offering legal representation to the auto body and collision repair company.

Industrywide, collision repair businesses have faced a range of operating challenges. A September 2025 report from Collision Repair cited rising auto-part prices, tariff-related costs, longer repair times, technician shortages, and higher labor expenses among the issues affecting repair businesses across North America.

Case Related Details

Court records show that the company owes roughly $1.93 million in unsecured debt to 15 creditors. Much of this debt comes from merchant cash advances, while the company also owes money to suppliers for automotive parts, paint, and other materials.

Filing records further show that its largest listed debts include $513,650 owed to Beyer Automotive and $280,000 owed to Sherwin-Williams. In addition, the company reported no priority unsecured debt.

Other details from the Chapter 11 petition are summarized here:

  • Filing Date: August 10, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of Virginia
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11, Subchapter V
  • Case Number: 26-11937-KHK
  • Estimated Assets: Between $0 and $50,000
  • Estimated Liabilities: Between $1,000,001 and $10 million
  • Estimated Creditors: 1-49

About the Company

Val Collision LLC operates as an auto body and collision repair company with locations in Falls Church and Alexandria, Virginia. It provides collision and body repair services, including dent repair, windshield repair and replacement, paint repair, wheel repair, auto detailing, and auto glass services. The company also works with multiple insurance companies and provides in-person repair estimates.

The official website shows that it has more than 30 years of experience, serving customers across the District of Columbia, Maryland, and Virginia. It adds that the company is the official auto body partner of Beyer Auto and works with several dealerships in the region.

Recent Filings by Other Automotive Repair Companies

Several automotive repair service providers have sought bankruptcy protection this year following a range of financial pressures.

MTJ Paint & Body Shop, Inc. entered Chapter 11 proceedings on June 8, 2026. Case records showed that the collision repair business had a wide gap between its assets and liabilities. The Miami-based company offers its services across Miami-Dade and certain locations of Broward County.

On April 10, 2026, a regional towing and auto repair shop in Lake Isabella, California, filed for bankruptcy. The petition showed that Amirepair I Inc. decided to proceed using Subchapter V. It added that the company is currently operating as Precision Automotive Paint & Collision & Towing, which has been actively offering its services for over three decades.

A San Antonio-based automotive repair company commenced Chapter 11 proceedings on February 13, 2026. Filing records showed that the 15-year-old company was aiming to reorganize its debts. The company currently provides light, medium, and heavy-duty repair services for vehicles and construction equipment.

Val Collision LLC now joins these automotive repair businesses that have attempted restructuring using bankruptcy protection. The company is expected to use the process to handle its outstanding obligations and readjust its finances.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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