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.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.For businesses, liquidation usually means closing for good and selling off the assets.LIQUIDATION WAREHOUSE INC is family owned and operated in North Fort Myers.Our customers enjoy 20% to 30% off electronics and up to 80% off all other merchandise from major retail chains.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.
Filing the Chapter 7 petition automatically stops most collection actions against the debtor, including lawsuits, garnishments, and phone calls. If all the debtor's assets are exempt or subject to liens, there may not be any assets to liquidate and hence no money to distribute to creditors.
The trustee handles the liquidation and determines which creditors are paid first.
Why It Matters The last step in the effort to repay debt in bankruptcy is usually to liquidate everything.
Businesses The procedure for filing Chapter 7 bankruptcy is very similar for businesses.
Public companies must also file a form 8-K with the SEC to notify shareholders of the bankruptcy proceedings.