Liquidating business assets
Individuals To file Chapter 7, the debtor files a petition with the local bankruptcy court.(In some cases, creditors can force a debtor into Chapter 7 by filing the petition themselves.) The debtor must provide the court with financial and tax information, as well as a list of creditors and outstanding debts.However, the steps preceding liquidation usually involve bankruptcy, which -- at the individual level -- virtually ruins a person's credit for several years, making it very difficult and expensive to borrow money in the future.
In the case of bankruptcy, when and how a borrower liquidates assets is a big deal.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'liquidate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. What It Is In the financial world, to liquidate something means to sell it for cash.
Although this sounds harmless, in the corporate world the term often carries a connotation of failure, because it is most often used in discussions about Chapter 7 -- a section of U. bankruptcy law under which companies and individuals liquidate their assets in order to repay their debts.
In the end, if a company's stock or bonds are deemed worthless by the bankruptcy court, investors might be able to deduct their losses on their tax returns.
Source: Investing Answers is most often used in discussions about Chapter 7 bankruptcy -- a section of U. bankruptcy law under which companies and individuals liquidate their assets in order to repay their debts.