What debts are eligible to be discharged in Chapter 11?

In Nevada, Chapter 11 Bankruptcy Law allows for a debtor to reorganize debt and obtain a fresh start. The debtor is able to make payment arrangements that fit within his/her current financial situation. When filing for Chapter 11, certain debts are eligible to be discharged. The first type of debt eligible for discharge in Chapter 11 bankruptcy is unsecured debt. This type of debt is not backed by a collateral asset or guarantee, such as credit cards, medical bills, and certain types of loans. Additionally, any debt that arises from fraud or misrepresentation, such as fraudulent chargebacks or false representation of services rendered, is also eligible for discharge. Chapter 11 also allows for the discharge of alimony or child support obligations that are no longer feasible for the debtor to pay. Particularly in cases of long-term alimony obligations, Chapter 11 allows the debtor to modify or reduce the amount of the payments to a more reasonable amount. Finally, any income taxes that are more than three years old and meet certain criteria are also eligible for discharge under Chapter 11 Bankruptcy Law. This includes income taxes that are not associated with fraudulent activities or those that occurred prior to the filing of the bankruptcy petition. The types of debts eligible for discharge in Chapter 11 bankruptcy vary by state and federal laws. Therefore, it is important to consult with an experienced bankruptcy attorney to determine which of your debts may be eligible for discharge under Chapter 11.

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What debts are eligible to be discharged in Chapter 11?

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