Liquidating assets in
It is not necessary to file for bankruptcy to liquidate inventory.Liquidation can also refer to the act of exiting a securities position.In most cases the cash is intended for paying creditors.Both businesses and private individuals can liquidate their assets, which may include real estate, automobiles, equipment, raw materials and investments.Businesses that want to raise cash for spending can attempt to sell their assets to other businesses.Individuals can sell investments on the open market or sell property through a broker, as in the case of real estate.As company operations end, the remaining assets are used to pay creditors and shareholders, based on the priority of their claims. The business is no longer in existence once the liquidation process is complete.Unlike when individuals file for Chapter 7 Bankruptcy, the business debts still exist.
Asset liquidation is a way for businesses and individuals to get money for essential purchases.
When debts start to outweigh assets or become more than a business or individual can afford to repay, it may be necessary to liquidate assets in order to remain financially stable.
Liquidation of assets refers to selling off property in order to raise cash.
In financial terminology, assets are items that have value.
They are the opposite of debts, which signify money that is owed.