All About consolidation of creditors You Should Know

Consolidation of creditors

The merger is primarily a change of a corporate corporation, which refers to the registration and announcement by the registration authority, and the merging of more than two legal entities into a single legal entity. According to the law, as with the separation of companies, the amended corporate law has the rights and obligations to assume the legal person of the original company. The legal person of the original company must benefit from all claims to the outside world, and must be appreciated by the legal person of the company after the change in accordance with the law. The debtor cannot refuse to carry out the debt obligation on the basis that the creditor has changed. If the original company is entrusted or represented in the implementation of debt collection operations, the original company, after the change, re-manages the authorisation and transfer procedures.The issue of the enforcement of creditors in the separation, merger or modification of residences

The so-called separation usually refers to a corporation or other organization after a contract has been concluded, prior to the execution, on the basis of revocation, the creation of one or more new units. According to the law of our country, the separation of the parties should result in the transfer of the rights and debts of the contractual creditor, i.e. the contractual claims and debts of the cancelled units are transferred to the new unit for transfer. When a unit is separated after a contract is concluded, the unit generally has joint and several claims on the rights and obligations of the contract and assumes the joint and several debts. However, in the case of the separation of several new units, if the creditor and the debtor have specifically agreed that the receivables or obligations of the contract are the responsibility of each new unit, or part of the new unit, the initial contractual claims and obligations are assumed in accordance with the agreement;

The so-called merger, usually refers to the corporation or other organizations after the contract, and other units together to form a new unit. In accordance with the law, when the unit is merged, it results in the transfer of contractual debts and debts, i.e. if the units are merged, the combined corporation or any other organization exercises contractual law and fulfills contractual obligations.

The so-called change of residence refers to a natural person, corporation or other organization after the contract was established, prior to execution, has changed the contractual provisions of the parties' residence from one place to another. The change of residence of the parties often involves the place of execution of the contract and so on.

Whether the parties separate, merge or modify the residence, this does not affect the validity of the contract, i.e. both parties must execute the contract without being able to separate, merge or modify the residence for reasons of modification or termination of the contract. In general, the separation, merger or modification of the parties' residence does not affect the performance of the contract, as the parties to the separation, merger or modification of the residence are notified in a timely manner to the other party.

In the event of a separation, merger or modification of the party's domicile as a creditor, the party is required to inform the debtor of the situation. In the event of separation or consolidation, the contents of the creditor's notice include the name, address and distribution of the new established unit, as well as the circumstances of the distribution of creditors and debts, etc. If creditors do not inform these issues, it will be difficult for the debtor to properly discharge his obligations.

If the creditor fails to notify the debtor at the time of separation, merger or modification of the residence, which leads the debtor to pay the debt, the debtor has the right to suspend the performance or to deposit the object, and the consequences are borne by the creditor, not by the debtor. The so-called suspension of performance refers to the debtor who temporarily defers the performance of the contractual obligation when the duration of the contract is completed. The suspension of the performance is merely a temporary non-performance of the contract, rather than the termination of the contractual relationship, a permanent non-performance; after it has been specified that the separation, merger or change of residence of the creditor, the debtor resumes enforcement, but the debtor should not be allowed to be in a state of waiting for execution indefinitely, which is not good for the debtor, so that, after the suspension of a certain reasonable period of execution, the debtor may, in accordance with the law , submit the object to the legal filing authority to terminate the contractual relationship (the contents of the contract termination filing" chapter corresponding issues, no longer repeats here).

It should be noted that when performance costs are increased as a result of the creditors' merger to separate or modify dwellings, the increase is borne by the creditor.