When a firm is struggling, the risk of its assets eventually having to be liquidated to pay creditors increases.
"If the L.L.C. owns the machinery and somebody sues me, that's an asset of the company that can be liquidated to pay off this person," he said, referring to his limited liability company.
The ITS representative I spoke with wasn't willing to give a definitive answer on whether a house would always be liquidated to pay creditors, saying these details were decided on a case-by-case basis, weighing up the value versus the debts with other factors such as the individual's living and family situation.
I excluded companies which were created solely by the university or were liquidated to date.
In terms of assets, RESPs, vehicles, bursaries, and personal savings are generally expected to be liquidated to help pay for a student's education.
The Depression was deepening, the antiques business was in turmoil, and his father, Israel, who had galleries in Boston and New York, was forced to liquidate to pay his debts.
A debtor may be able to convert certain non-protected assets, which would be liquidated or used to pay a portion of his or her debt in a bankruptcy, to protected assets, which do not become a part of the bankruptcy estate and/or are exempt from liquidation.
The assets were liquidated for $30 million, with the bulk of the proceeds going to pay off the company's secured creditor, General Electric Capital.
As food gets more scarce, Karam says that those with access to any capital are liquidating their assets to pay for safe passage out of the besieged zones.
