Liquidating the assets

16-Apr-2019 13:28

(To ensure there isn’t any confusion about the sale, all bills of sale should clearly state “as-is, where-is.”) If your business owes creditors, they will have first claim on any proceeds you receive from a liquidation auction.

Liquidation of assets refers to selling off property in order to raise cash.

Medical bills quickly ate up the maximum on their health insurance, and there were child care expenses for their two older children while the Rapps stood vigil at the hospital.

"The incidental expenses, such as eating out two or three times a day, made for a really expensive spring and summer," says Rapp.

When a company’s assets are liquidated, or converted to cash, the cash is then used to pay off creditors.

But there are different classes of creditors that determine in what order they are paid.

Liquidation of assets refers to selling off property in order to raise cash.

Medical bills quickly ate up the maximum on their health insurance, and there were child care expenses for their two older children while the Rapps stood vigil at the hospital.

"The incidental expenses, such as eating out two or three times a day, made for a really expensive spring and summer," says Rapp.

When a company’s assets are liquidated, or converted to cash, the cash is then used to pay off creditors.

But there are different classes of creditors that determine in what order they are paid.

Because cash is already a liquid asset, there is no need to liquidate it to pay creditors.