Liquidate
/ˈlɪkwəˌdeɪt/
Definitions
- (v.) To convert assets into cash, especially to settle debts or close an account.
The company decided to liquidate its assets to pay off creditors.
- (v.) To wind up or dissolve a business by selling its assets and distributing the proceeds to creditors and shareholders.
The firm was forced to liquidate after filing for bankruptcy.
- (v.) To eliminate or dispose of something, often in a legal or financial sense.
The contract required the parties to liquidate all outstanding claims.
Forms
- liquidates
- liquidated
- liquidating
Related terms
See also
Commentary
In legal contexts, "liquidate" often implies a formal process of converting assets to satisfy debts, distinct from mere sale or disposal.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.