Before you know it, the liquidating of assets can get complicated. When you’re thinking about liquidation, often, time can be of the essence. To clarify the process, let’s break down some of its most essential elements.
Why Do People Liquidate?
People liquidate for different reasons:
- To reallocate funds
- To convert assets to spending money
- To pay off debts
To pay for your kid’s college, you might decide to liquidate your jewelry, fine art, or other collections. Then again, you may look at your retirement funds and decide that you need to boost that nest egg. Personal property liquidation can be the means to an end, whatever your reason.
What Does it Mean to Liquidate Assets?
When someone liquidates their assets or personal property, it means that they are selling it. Real estate, for example, has a distinct value. Assets that are liquidated have general value as well. This could apply to a house, a car, fine jewelry, artwork or something else. Many people, in order to remain financially stable, start selling off or liquidating their assets – particularly if their assets are outweighed by their debt. Liquidation of real estate or assets means that they are converted to cash.
Particularly as it applies to real estate, the liquidation of assets can happen for any number of reasons. The person liquidating might need to:
- Support a financially troubled child.
- Make good on a legal judgment.
- Increase emergency savings.
- Pay off debt.
Liquidation can carry a negative connotation when done under the above stated circumstances. Truth be told, numerous financial wounds can be soothed by liquidating personal property. By no means is that a bad thing!
The Time to Liquidate
Liquidation can be used to clear your debts if you’re going through bankruptcy. What can be sold in order to clear your debts can be determined by a court-appointed trustee. They may decide to liquidate everything or nothing, depending on what is owed in the bankruptcy list. Might you be left with no possessions, money, etc.? Per the laws of bankruptcy, that shouldn’t happen.
If time ends up being of the essence, several approaches are usually used by the liquidator. They act as:
- Someone trying to meet immediate financial needs because they’re dealing with the loss of income.
- Someone looking to satisfy a court determined judgment as a party in a legal matter.
- Someone needing to pay off a recently deceased person’s financial obligations as the estate/will executor.
Liquidating personal assets can sound like a real headache! But there is someone out there who wants to make the liquidation of your personal property a bit easier on you and your loved ones. Contact us at Showplace Estate Buyers. With empathy and consideration, we can help liquidate any number of personal possessions.