legal definition of liquidation
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liquidation A type of proceeding pursuant to federal Bankruptcy law by which certain property of a debtor is taken into custody by a trustee to be sold, the proceeds to be distributed to the debtor's creditors in satisfaction of their claims.
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Bankruptcy Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency.
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Bankruptcy Chapter 7 is the most common form of bankruptcy for individuals. It is a liquidation bankruptcy, which means that the court sells all your assets for cash and then pays your creditors. You can keep assets that are exempt from sale either under federal law or the law of your home state. Chapter 7 bankruptcy can wipe out most of your debts.
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- BREAKING DOWN 'Liquidate'. 1. An individual may choose to liquidate his or her possessions or investments to pay off creditors, convert assets to cash for spending or because the investments are not going to increase in value and the investor wants to re-allocate funds.. Businesses are best known to liquidate assets as a part of bankruptcy procedure, but the process can also be used by businesses to free up cash, even in the absence of financial hardship.
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court order divestiture - an order to an offending party to rid itself of property; it has the purpose of depriving the defendant of the gains of wrongful behavior; the court found divestiture to be necessary in preventing a monopoly. judicial writ, writ - (law) a legal document issued by a court or judicial officer.
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discharge Discharge also means to release, as from legal confinement in prison or the military service, or from some legal obligation such as jury duty, or the payment of debts by a person who is bankrupt. The document that indicates that an individual has been legally released from the military service is called a discharge. The performance of a duty discharges it. An attorney may speak of discharging a legal obligation. discharge. v. 1) to perform one's duties. 2) to dismiss someone from a job. 3) to pay one's debts or obligations.
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What does 'Liquidate' mean Liquidate means to convert assets into cash or cash equivalents by selling them on the open market. Liquidate is also a term used in bankruptcy procedures in which an entity chooses or is forced by a legal judgment or contract to turn assets into a liquid form.
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- Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types -- liquidation and reorganization. Chapter 7 bankruptcy comes under the liquidation category. It's called liquidation because the bankruptcy trustee may take and sell (liquidate) some of your property to pay back some of your debt. However, you may keep property that is protected (also called exempt) under state law.
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What does 'Liquidate' mean What does 'Liquidate' mean Liquidate means to convert assets into cash or cash equivalents by selling them on the open market. Liquidate is also a term used in bankruptcy procedures in which an entity chooses or is forced by a legal judgment or contract to turn assets into a liquid form (cash).
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- DEFINITION of 'Liquidation'. 1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors.Any leftovers are distributed to shareholders.2.Any transaction that offsets or closes out a long or short position.. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. 2. Any transaction that offsets or closes out a long or short position.
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Free riding Liquidation and Free Riding. A liquidation violation occurs when the client sells a security to satisfy a cash obligation for the purchase of a different security after trade date. This is a violation because the sale of the second security will not be settled by the time the first purchase settles.
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Sequestration (law) Sequestration (law) Not to be confused with Budget sequestration. Sequestration (in law) is the act of removing, separating, or seizing anything from the possession of its owner under process of law for the benefit of creditors or the state.
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liquidation 1. liquidation-termination of a business operation by using its assets to discharge its liabilities. settlement. ending, termination, conclusion-the act of ending something; the termination of the agreement. viaticus settlement, viatical settlement-sale of an insurance policy by a terminally ill policy holder.
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Rules and Regulations for Liquidation of a Corporation IRS Filing Requirements. IRS Regulation 4.11.7 outlines filing requirements and defines corporate responsibilities for recognizing gains or losses on the liquidation of each business asset. For example, IRS Form 966, Corporate Dissolution or Liquidation, must be filed within 30 days of filing the initial articles of dissolution. Shareholders receiving distributions of $600 or more in a calendar year must receive a 1099-DIV.
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liquidation the process of realizing upon assets and of discharging liabilities in concluding the affairs of a business, estate, etc. the process of converting securities or commodities into cash. the state of being liquidated: an estate in liquidation.
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What does 'Liquidate' mean What does 'Liquidate' mean. Liquidate means to convert assets into cash or cash equivalents by selling them on the open market. Liquidate is also a term used in bankruptcy procedures in which an entity chooses or is forced by a legal judgment or contract to turn assets into a liquid form (cash). In finance, an asset is an item that has value. BREAKING DOWN 'Liquidate'
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liquidation The settlement of the financial affairs of a business or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs, or other parties with a legal claim. The liquidation of a corporation is not the same as its dissolution (the termination of its existence as a legal entity). Depending upon statute, liquidation can precede or follow dissolution.
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Legal Terms The chapter of the Bankruptcy Code providing for liquidation that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. in order to be eligible for this, the debtor must satisfy a means test. The court will evaluate the debtor's income and expenses to determine if the debtor may proceed under this
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- A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 case that removes your personal liability for debts. A bankruptcy discharge is a court order issued at the end of a Chapter 7 or Chapter 13 case that removes your personal liability for debts.
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bankruptcy Through bankruptcy, debtors liquidate their assets or restructure their finances to fund their debts. Bankruptcy law provides that individual debtors may keep certain exempt assets, such as a home, a car, and common household goods, thus maintaining a basic standard of living while working to repay creditors.
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Chapter 11. Examining Officers Guide (EOG) IRC section 346(a) allows for a series of distributions pursuant to a plan of liquidation to be treated as being part of a complete liquidation. If the plan is not formal or is ambiguous, there may be uncertainty as to which distributions are made pursuant to the plan.
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What is 'Liquidation' What is 'Liquidation' Liquidation in finance and economics, is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they come due.
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liquidation liquidation - termination of a business operation by using its assets to discharge its liabilities settlement ending, termination, conclusion - the act of ending something; the termination of the agreement
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- Download that model file and cut-paste the model folder into the 737-600 folder. [u]Part 2: The Panel Merge with default VC[/u]. 1. Copy-paste the panel folder from the default 737-800 into the Posky 737-600 folder. 2.
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Whatâs the Difference? Liquidation vs. Dissolution The De Facto Company Closure. A complete liquidation is not always accompanied by a formal or legal company shutdown. According to Section 1.332-2(c) of the tax code, “…legal dissolution is not required…” What’s more, a related revenue rule (Rev. Rul.
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liquidate Definition of liquidate for English Language Learners. 1  business : to sell (a business, property, etc.) especially to pay off debt. : 2  to pay all the money owed for (a debt) : 3  to destroy (something) or kill (someone)