What debts are eligible to be discharged in Chapter 11?

In Virginia, Chapter 11 bankruptcy is a type of debt relief available to individuals and businesses. The general rule is that most debts that are not secured by collateral can be discharged in Chapter 11. This includes many types of consumer debt such as credit card debt, medical bills, personal loans, and utility bills. Chapter 11 also allows debtors to discharge past-due taxes, as long as they meet certain criteria. In addition, some types of secured debt may also be eligible to be discharged in Chapter 11. This could include car loans, mortgages, or other debts that are tied to collateral. If the debtor is able to reaffirm the debt with the lender, this can also be done in Chapter 11. If the debt is reaffirmed, the debtor will be required to make payments on the loan and remain responsible for the debt even after the bankruptcy is finalized. It is important to note that certain debts are not eligible to be discharged in Chapter 11. These non-dischargeable debts include student loans, child support and alimony payments, and certain types of taxes. In addition, certain debts that are secured by collateral may only be partially discharged. In these cases, the debtor may remain partially responsible for the debt even after the bankruptcy is finalized. It is important to consult a qualified attorney or credit counselor to discuss the specifics of your debt and to ensure that all eligible debts are discharged in Chapter 11.

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