Can I discharge taxes in a Chapter 11 bankruptcy?

Yes, you can discharge taxes in a Chapter 11 bankruptcy in Virginia. A Chapter 11 bankruptcy is a type of reorganization bankruptcy that allows an individual or business to continue functioning while reorganizing their debt. This type of bankruptcy is usually used by businesses, but individuals may also take advantage of it. In a Chapter 11 bankruptcy, the debtor can propose a plan to the court to reorganize their debt over time, meaning that the debt will be paid back in full or in part over time. Taxes can be included in the plan and paid back over time. Taxes from the three or four years prior to the bankruptcy can generally be included in the plan and paid off over time. However, even if the taxes are included in the reorganization plan and paid back over time, the taxpayer may still have to pay any interest and penalties that have accrued on the taxes. When the tax debt is included in the plan and paid back over time, the taxpayers can usually avoid any interest and penalties that would normally be due. In conclusion, yes, you can discharge taxes in a Chapter 11 bankruptcy in Virginia. With this type of bankruptcy, taxes can be included in the reorganization plan and paid back over time. Interest and penalties may still accrue on the taxes, but they can usually be avoided.

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Can I discharge taxes in a Chapter 11 bankruptcy?

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