Define liquidating

In the law, property liquidation almost always refers to the process of selling off a bankrupt debtor's property to satisfy the debtor's creditors.

At its most basic, property liquidation is a sale of that property.

The company may get more money for its inventory this way, but it may take longer to sell the products and receive payment.

As an alternative, it can sell its entire inventory to a liquidator, who will pay a lower price for the products but will take possession of them and pay for them immediately.

The reasons property may be liquidated or sold off are extremely varied.

For example, you might liquidate a vacation home to generate funds to pay for your child's college education.

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In some cases, property is liquidated to provide a source of funding to buy other property; in others it may be liquidated in bankruptcy.

From a buyer's point of view, an inventory liquidation sale can provide a valuable opportunity to purchase goods at rock-bottom prices.

However, liquidators can be picky about the merchandise they buy.

Another option to convert your non-mortgaged home to cash is to discount it to a price sure to quickly attract buyers. Guerra is a former realtor, real-estate salesperson, associate broker and real-estate education instructor.

If you already own real property as an investment, make it more liquid by exchanging it for similar property and doing an IRS Section 1031 exchange. He holds a master's degree in management and a bachelor's degree in interdisciplinary studies.

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