Definition of a liquidating loan

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Hoopdriver, indeed, was quite spent, and only a feeling of shame prolonged the liquidation of his bankrupt physique.The House of Commons determined to apply this to the liquidation of a debt.Typically, these loans are tied to inventory, accounts receivable, machinery and equipment.Asset-based lending in this more specific sense is possible only in certain countries whose legal systems allow borrowers to pledge such assets to lenders as collateral for loans (through the creation of enforceable security interests).Property liquidation also frequently occurs in bankruptcy.A bankruptcy trustee can order your property liquidated to pay off your creditors.Any interest owed on the amount of the loan is also included in the liquidated debt amount.

This may also be true of a period of liquidation not preceded by crisis.Whether it is a home loan, car loan or student loan, these types of liquidated debts represent an exact dollar amount that must be paid back by the loan's maturity date.For example, if a bank lends you ,000 on a two-year promissory note, the amount due at the loan's maturity date is clear.Debt is a term that relates an amount of money that is owed by one party to another.When a fixed dollar amount is known for that debt -- meaning the debt is clear and undisputed by either party -- the debt is known as a liquidated debt.

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