liquidate (2024)

To liquidate assets means to convert non-liquid assets into liquid assets by selling them on the open market. An individual or company can voluntarily liquidate an asset, or can be forced to liquidate assets through the bankruptcy process.

Voluntary liquidation can happen when the individual or business needs cash to either fulfill other investment or non-investment obligations, or to reallocate funds, etc.

Liquidating assets in the bankruptcy process can happen when a creditor liquidates a debtor’s assets to collect debt. This process usually is handled by a court officer, often a sheriff, through power given by a writ of execution from the court. The sheriff would first take the assets of a debtor through garnishment. If the asset is non-liquid, the sheriff will sell it, usually in a public auction in the court, and will give the creditor the owed cash from this sale, while the rest goes back to the debtor.

[Last updated in July of 2020 by the Wex Definitions Team]

liquidate (2024)

FAQs

What if your annual budget shows a deficit you can? ›

Here's the best way to solve it. If your annual budget shows a deficit, you can increase your income to balance your budget.

What can you do if your budget shows an annual budget deficit? ›

What can you do if your budget shows an annual budget deficit? Liquidate enough savings and investments to meet the total budget shortfall for the year, increase income, borrow enough to meet the total budget shortfall for the year, and cut low-priority expenses from the budget.

Is a budget deficit a bad thing? ›

A government runs a fiscal deficit when it spends more than it takes in from taxes and other revenues. An increase in the fiscal deficit can boost a sluggish economy by giving individuals more money to buy and invest more. Long-term deficits can be detrimental to economic growth and stability.

What happens if you're in too much of a deficit? ›

Risks of Eating Too Few Calories

Consuming too few calories can lead to nutrient deficiencies, slow metabolism, and even loss of muscle mass. To maintain health while losing weight, finding a healthy balance that supports a gradual and sustainable calorie deficit is important.

What is an example of a deficit? ›

A budget deficit occurs when a government spends more in a given year than it collects in revenues, such as taxes. As a simple example, if a government takes in $10 billion in revenue in a particular year, and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion.

What are the four causes of budget deficits? ›

In summary, budget deficit causes can include economic downturns and rising unemployment, decreased consumer spending, increased government spending and fiscal stimulus, high interest payments and rising interest rates, demographic factors, and unplanned emergencies.

How do you cover a deficit? ›

A high value of deficit indicates that the government should cut down on its expenditures. The government may increase its revenue receipts by increasing tax income. Disinvestment which means selling off assets is another remedial measure to reduce revenue deficit.

How long can you be in a deficit for? ›

It depends on our dieting history, our relationship with food, our goals, our rate of progress, and many more factors. In general, a deficit can range from 8-16 weeks. We may trend toward the shorter end of the range if working toward less drastic goals within a shorter time frame.

How much should you be in a deficit by? ›

A good rule of thumb for healthy weight loss is a deficit of about 500 calories per day. That should put you on course to lose about 1 pound per week. This is based on a starting point of at least 1,200 to 1,500 calories a day for women and 1,500 to 1,800 calories a day for men.

Top Articles
Latest Posts
Article information

Author: Madonna Wisozk

Last Updated:

Views: 6467

Rating: 4.8 / 5 (48 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Madonna Wisozk

Birthday: 2001-02-23

Address: 656 Gerhold Summit, Sidneyberg, FL 78179-2512

Phone: +6742282696652

Job: Customer Banking Liaison

Hobby: Flower arranging, Yo-yoing, Tai chi, Rowing, Macrame, Urban exploration, Knife making

Introduction: My name is Madonna Wisozk, I am a attractive, healthy, thoughtful, faithful, open, vivacious, zany person who loves writing and wants to share my knowledge and understanding with you.