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Handling Creditors' Claims


   

Rejected Claims
You must advise creditors in writing if the corporation rejects their claim. The rejection letter should also state that the rejected claim will be barred by statute unless the creditor commences an action to enforce the claim within the period set by statute. The statutory period is usually 90 days from the date of the rejection letter.

Accepted Claims
Accepted claims that are timely must either be paid or arrangements satisfactory to the creditor must be made for repayment. For example, a creditor may agree to waive the corporation's liability for a debt if a shareholder agrees to repay the obligation.

 

Dissolving a Corporation:
 Corporate Action
 Filing With the State
 Notification to Creditors
 Handling Creditors' Claims
 Distribution of Remaining Assets

 

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