What is Debt Consolidation?

Creditor merger refers to the combination of an organization as a creditor and other organizations into an organization, and the original organization can exist (absorption and merger). It can also be destroyed (new merger).

Creditor merger

Right!

Creditor merger refers to the combination of an organization as a creditor and other organizations into an organization, and the original organization can exist (absorption and merger). It can also be destroyed (new merger).

Chinese name

Creditor merger

Foreign name

Creditors to merge

Features

The original tissue can exist (absorption and merger)

Nature

Change of corporate entity

Merger is mainly the change of a corporate legal person, which means that after registration and registration by the registration authority, two or more legal persons are merged into one legal person. According to the law, just like the separation of enterprises, the changed corporate legal person enjoys the rights and obligations of the original corporate legal person. The original corporate legal person shall enjoy all the creditor's rights to the outside world, and shall be enjoyed by the changed corporate legal person in accordance with the law. The debtor shall not refuse to perform the obligation on the ground that the creditor has changed and changed. When accepting the entrustment of the original enterprise and acting as the debt collection agent, after the original enterprise has changed, it shall go through the authorization and entrustment procedures again.

The so-called separation generally refers to the establishment of one or more new units by a legal person or other organization on the basis of being revoked after entering into a contract and before performing it. According to Chinese law, the separation of the parties will cause the transfer of contract claims and debts, that is, the transfer of the contract claims and debts of the cancelled unit to the new unit. In the event that a unit is divided after entering into a contract, the divided unit shall generally enjoy joint claims on the rights and obligations of the contract and assume joint liabilities. However, in the case of separation into several new units, if the creditor and the debtor specifically agree that the creditor's rights or debts of the contract shall be borne by each new unit, or by one or part of the new units, the original contract shall be borne in accordance with the agreement Creditor's rights and debts; if the creditors and debtors of the contract do not have the above-mentioned special agreement, the separate units shall bear joint claims and debts.

The so-called merger generally refers to the establishment of a new unit by merging with other units after the contract is signed by a legal person or other organization. According to the law, when the units are merged, the contract creditor's rights and debts will be transferred, that is, if the units are merged, the merged legal person or other organization will exercise the contract rights and perform the contract obligations.

The so-called change of domicile means that a natural person, legal person or other organization changes the domicile of the parties stipulated in the contract from one place to another after the contract is established and before the performance. Changes in the domicile of the parties often involve issues such as where the contract is performed.

Whether the parties split, merge or change their domicile does not affect the validity of the contract, that is, both parties must perform the contract without changing the content of the contract or canceling the contract on the grounds of division, merger or change of domicile. In general, the parties' separation, merger, or change of domicile will not affect the performance of the contract, as long as the parties to the division, merger, or change of domicile notify the other party in a timely manner.

In the event that the party acting as the creditor splits, merges or changes its domicile, the party is obliged to notify the debtor of the situation. In the case of a division or merger, the contents of the creditor's notice shall include the name, address and distribution of creditor's rights and other matters necessary for the performance of the contract. If the creditor does not notify these matters, it will be difficult for the debtor to perform its obligations correctly.

If the creditor fails to notify the debtor of the division, merger, or change of residence in a timely manner, causing difficulties in the debtor's performance of the debt, the debtor has the right to suspend performance or deposit the subject matter, and the consequences arising therefrom shall be borne by the creditor, not the debtor. The so-called suspension of performance means that the debtor temporarily postpones the performance of the contract debts when the contract performance period comes. The suspension of performance is only a temporary non-performance of the contract, not a termination of the contractual relationship and permanent non-performance. After the situation of the creditor's separation, merger, or change of residence is clarified, the debtor should resume performance, but it should not leave the debtor indefinitely waiting for performance. Status, which is unfavorable to the debtor, so if the debt cannot be fulfilled after suspension of a certain reasonable period of time, the debtor may deposit the subject matter to a legal deposit institution in accordance with the law to terminate the contract relationship (for details of the deposit, see this The corresponding question in the chapter "Termination of the Contract" is not repeated here).

It should be pointed out that if the performance expenses are increased due to the merger or separation of creditors or domicile, the increase shall be borne by the creditors.