Definition of self liquidating debt
At this point, the company will have generated profits from the busy season, and will now be able to use those profits to repay the loans it took out to finance operations during the busy season. See Also: Loan Agreement Collateralized Debt Obligations When is an interest rate not as important in selecting a loan?
kill, murder, remove, destroy, do in (slang), silence, eliminate, take out (slang), get rid of, wipe out (informal), dispatch, finish off, do away with, blow away (slang, chiefly U.
The debts still exist in theory, at least until the statute of limitations has expired, but there is no debtor to pay them, so they must be written off in practice.
Then the borrower takes the revenue generated from those business activities and uses it to repay the money that was borrowed to finance the activities.Once the process is complete, the business is dissolved.This is not the same as its debts being discharged, as happens when an individual files for Chapter 7.It is not necessary to file for bankruptcy to liquidate inventory.Liquidation can also refer to the act of exiting a securities position.