What is Liquidate?
How Does Liquidate Work?
Individuals, partnerships or corporations can liquidate assets. In the case of bankruptcy, when and how a borrower liquidates assets is a big deal. If all the 's assets are tax-exempt or subject to liens, there may not be any assets to liquidate and hence no to distribute to creditors. If there are assets to liquidate, however, the creditors usually file a written claim so they can receive some of the proceeds. The trustee handles the and determines which creditors are paid first.
Why Does Liquidate Matter?
The last step in the effort to repay debt in is usually to liquidate everything. However, the steps preceding usually involve , which -- at the individual level -- virtually ruins a person's for several years, making it very difficult and expensive to borrow .
For businesses, liquidation usually means closing for good and selling off the assets. In the end, if a company's or are deemed worthless by the bankruptcy court, investors might be able to deduct their losses on their tax returns.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Warren Buffett is quick to remind investors that derivatives have...Read More →
According to financial industry studies, more than three-quarters of portfolio performance and volatility is related to asset...Read More →
When it comes to figuring out credit scores, there are very few things that are obvious. Really, I spend a lot of time following this stuff and sometimes...Read More →
When I first decided that these super-popular investments...Read More →