What debts are eligible to be discharged in Chapter 11?

In Wisconsin, Chapter 11 Bankruptcy Law allows individuals and corporations to reorganize financial obligations in an effort to restructure debts and find a way to pay them off. The main goal of Chapter 11 is to give the debtor a second chance while allowing creditors to receive at least some payment. Chapter 11 Bankruptcy Law in Wisconsin allows debtors to work with creditors to create an approved repayment plan or reorganization plan. During this process, some debts are legally discharged and eliminated, meaning the debtor is not obligated to pay them back. The most common types of debts that are discharged through Chapter 11 Bankruptcy Law in Wisconsin are credit card debt, medical bills, personal loans, telephone bills, utility bills, and any other unsecured debts. In addition, Chapter 11 Bankruptcy Law in Wisconsin also allows for the discharge of certain taxes that are more than 3 years past due. This includes income taxes, payroll taxes, sales taxes, and others. Note, however, that certain debts are not eligible for discharge. These include certain federal student loans, delinquent child support, and criminal fines and restitution payments. In addition, some taxes are not eligible for discharge, such as fraudulently obtained tax refunds and taxes related to unpaid wages. Regardless, it is important to consult a qualified bankruptcy lawyer to ensure any debts or taxes are eligible for discharge under Chapter 11 Bankruptcy Law in Wisconsin.

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What debts are eligible to be discharged in Chapter 11?

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