Liquidating assets for lots of activities dating
Liquidation can occur regardless of the nature of the asset or the identity of the buyer.Asset liquidation is a way for businesses and individuals to get money for essential purchases.Chapter 7, also known as liquidation bankruptcy and available to both private individuals and businesses, allows a court to appoint a trustee who sells off, or liquidates, the bankrupt party's assets and pays the proceeds to creditors.Following liquidation, the court can discharge any remaining debt.The debt will remain until the statute of limitation has expired, and as there is no longer a debtor to pay what is owed, the debt must be written off by the creditor. The most senior claims belong to secured creditors who have collateral on loans to the business.
The specific types of property, as well as their maximum value, are defined by state and federal bankruptcy laws.
In bankruptcy cases, the court-appointed trustee decides the means for liquidating assets.
This may involve a public auction, published sale listing or sale on an open financial market.
If that does not cover the debt, they will recoup the balance from the company’s remaining liquid assets, if any.
Finally, shareholders receive any remaining assets, in the unlikely event that there are any.
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.