After the Civil War, Congress agreed to pay the debts incurred by fighting to defeat the Confederacy but not Confederate debts.
During the Civil War, the Confederate states incurred significant debt. Congress addressed the issue of debt following the war by deciding to honor debts incurred in fighting to defeat the Confederacy but not Confederate debts. This decision was specified in the Amendments 11-27, where it was clarified that debts arising from aiding insurrection or rebellion against the United States would not be assumed or paid.
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