Virginia Code

Va. Code Ann. § 11-10 (2026)

Compromise by creditor with co-obligor, etc

✓ current as of May 2026
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A creditor may compound or compromise with any joint contractor or co-obligor, and release him from all liability on his contract or obligation, without impairing the contract or obligation as to the other joint contractors or co-obligors.

Code 1919, § 5763.

Notes of Decisions
Cited in 9 cases (4 in the last 5 years), 1995–2024 · leading case: Schiffer v. United Grocers, Inc., 989 P.2d 10 (Or. 1999).
Schiffer v. United Grocers, Inc., 989 P.2d 10 (Or. 1999). · cites it 2× “Virginia: Va Code Ann § 11-10 (Michie 1993 and Supp 1998) ("creditor may compound or compromise with any joint contractor or co-obligor, and release him from all liability on his contract or obligation, without impairing the contract or obligation as to the other joint…”
Crossroads of Hillsville v. Payne, 179 B.R. 486 (W.D. Va. 1995). · cites it 2× “This Court disagrees with Payne because Va.Code Ann. § 11-10 (Michie 1993) states that a creditor can make any compromise with a co-obligor and release him from liability without impairing the creditor's rights against other co-obligors.”
Eugene Davis solely in his capacity as Liquidating v. West Virginia State Tax Dep't (Bankr. E.D. Mo. 2021). · cites it 3× “Va. Code Ann. § 11-10 - 11(c), “no refund shall be made unless the taxpayer has timely filed a claim for refund with the Tax Commissioner.”
Keith G. Taylor v. Dale W. Steager W. Va. State Tax Comm'r (W. Va. 2018). · cites it 2× “Va. Code § 11-10 -5a (2013). 12 West Virginia Code § 11-10-5c provides: If any person fails to file any return required by this article or any article administered by this article, at the time required by law or by regulation made under authority of law, or makes and files…”
Tax Analysts v. Matthew Irby, West Virginia State Tax Comm'r (W. Va. 2024). · cites it 2× “Va. Code § 11-10 -5d(b)(5)(B). The circuit court agreed with the Department and granted the motion to dismiss.”
Falbo v. Falbo (S.D.W. Va 2018). · cites it 2× “Va. Code § 11-10 -17a(e)(1) (stating that interest on deficiencies is calculated “using the interest rate in effect for each respective year”).”
Irby, Acting State Tax Comm'r of West Virginia v. Zheng (W. Va. 2021). “Va. Code § 11-10 -5a (1986). If the Commissioner believes that a tax return is deficient, he may determine or estimate the tax liability and issue a tax assessment: If the Tax Commissioner believes that any tax administered under this article has been insufficiently returned by…”
Shenandoah Pers. Commc'ns, LLC v. Matthew Irby, State Tax Comm'r of West Virginia (2024). “Va. Code § 11-10 - 25(a); W. Va. Code § 11-15-6 (a).”
Deutsche Bank Trust Co. Americas, as Tr. For The Registered Holders of UBS Commerical Mortg. Trust 2012-C1, Commerical Mortg. Pass-Through Certificates, Series 2012-C1 v. Mountain West Hosp., LLC (N.D.W. Va. 2017). “Va. Code § 11-10 -5j (West 2017)). The State therefore believes that Mountain West “converted at least $720,000 in collected but unremitted trust taxes,” or that Deutsche Bank “may have converted or may still be holding some or all of these trust funds either by or through an…”
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