Liquidation
/ˌlɪkwɪˈdeɪʃən/
Definitions
- (n.) The legal process of winding up a company's affairs, selling assets to pay creditors before dissolution.
The company entered liquidation after failing to pay its debts.
- (n.) The act of settling or paying off debts or obligations.
The liquidation of the estate was completed within six months.
Related terms
Commentary
In drafting, distinguish between voluntary and compulsory liquidation to clarify the initiating party and procedure.
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.