A debt is liquidated when it is certain what is due and how much is due: cum certum est an et quantum debeatur.
In finance and economics, liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. Bankruptcy Code governs liquidation proceedings; solvent companies can also file for Chapter 7, but this is uncommon.
Withdrawals may also be taken from a Roth IRA, which is funded with after tax dollars.
With this type of account, you can use the funds to pay off debt with no repayment needed.
You may want to consider liquidating any assets you have and using that money to help pay down your debts.
If you are considering selling antiques or collectibles you can also consider local auctions houses or selling them to a reputable dealer.The company’s operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims. Not all bankruptcies involve liquidation; Chapter 11, for example, involves rehabilitating the bankrupt entity and restructuring its debts.Liquidation is the process of bringing a business to an end and distributing its assets to claimants.Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities.
The term can apply to a company that experiences seasonal fluctuations in business.The debts still exist in theory, at least until the statute of limitations has expired, but there is no debtor to pay them, so they must be written off in practice.