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When a corporation files a petition for the protection of the bankruptcy laws, the financial obligations...

When a corporation files a petition for the protection of the bankruptcy laws, the financial obligations of the corporation are suspended pending the resolution of the issue by the bankruptcy courts . True or False

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Yes the statement is very true that whenever a corporation files a petition for the protection of the bankruptcy laws, then in such a situation all the financial obligations of the corporation are suspended during that time period.It is so because the court puts a stay on the financial obligations of the corporate during that particular time period.Thus,it is due to the orders of the court that the financial obligations are suspended.When the court removes the stay,then the financial obligations are also freed.

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