The Arrears Company has been Split or Merged. How Should Creditors Recover the Arrears?

2020/1/8

Creditors may request the company after the merger or division to repay the arrears. The law stipulates that the creditor's rights and debts that existed before the merger of the company shall be inherited by the company survived the merger or the newly established company. Thus, after the company that owes money is merged with other companies, if the company that owes money still exists, it should still repay the debt; if it is cancelled, the company that survived the merger or the newly established company will continue to bear the debts generated before the merger. 

The law stipulates that the company's debts before the division shall be jointly and severally liable, unless the company agrees in writing with the creditors on debt settlement before the division. Therefore, after the debt company is divided, the divided company shall bear joint and several liabilities to the creditors, and the creditor may claim all the claims to any of the divided companies unless the parties to the debt relationship agree otherwise.