New Jersey Statutes 14A:12-13. Barring of claims of creditors
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Terms Used In New Jersey Statutes 14A:12-13
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
(1) Any creditor as defined in subsection 14A:12-12(3) who does not file his claim as provided in the notice given pursuant to section 14A:12-12, and all those claiming through or under him, shall be forever barred from suing on such claim or otherwise realizing upon or enforcing it except, in the case of a creditor who shows good cause for not having previously filed his claim, to such extent as the Superior Court may allow
(a) against the corporation to the extent of any undistributed assets; or
(b) if the undistributed assets are not sufficient to satisfy such a claim, against a shareholder to the extent of his ratable part of such claim, out of the assets of the corporation distributed to him in liquidation or dissolution.
(2) This section shall not apply to claims which are in litigation on the date of the first publication of the notice pursuant to section 14A:12-12
L.1968, c.350; amended by L.1973, c. 366, s. 71, eff. May 1, 1974.