Bankruptcy Liquidation

Bankruptcy liquidation is a legal process where a company or individual unable to pay debts sells off their assets to repay creditors. During this process, a court may appoint a trustee to oversee the sale of assets, which can include property, inventory, and equipment. The funds generated from these sales are then distributed to creditors according to the priority of their claims. This process ultimately helps to settle debts but often leaves no remaining assets for the debtor. It typically leads to the dissolution of the business or a fresh financial start for the individual.