Liquidation Lawyers
LegalMatch Law Library Managing Editor, Ken LaMance, Attorney at Law 
What Is Liquidation?
Liquidation refers to the process of valuing a collection of assets that belong to a debtor. In most cases, liquidated items are used to detract from outstanding debts during bankruptcy proceedings.
How Do I Know What Property Will Be Liquidated?
Items that a debtor is allowed to keep are called exemptions and are not liquidated. Exemptions are defined by statute and vary from state to state. Many states allow you to select from state or federal bankruptcy exemptions; some states offer no exemptions.
When Else Is Liquidation Used?
Liquidation can be used by corporations before or after dissolution. A liquidated corporation normally uses the money to given to stockholders who have stakes in the business. In these kinds of cases the liquidation process is treated as a sale or exchange of stock and treated as a capital gain or loss for income taxes.
Do I Need A Lawyer For Liquidation?
A lawyer is not required during the liquidation process but it’s usually a good idea. An experienced Bankruptcy Lawyer can help you negotiate the terms of your bankruptcy and liquidation of certain items.
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Last Modified: 12-08-2009 03:55 PM PST
