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Medical bills quickly ate up the maximum on their health insurance, and there were child care expenses for their two older children while the Rapps stood vigil at the hospital."The incidental expenses, such as eating out two or three times a day, made for a really expensive spring and summer," says Rapp.In financial terminology, assets are items that have value.They are the opposite of debts, which signify money that is owed.Every successful business owner is well aware of the challenges associated with starting up a business, but few consider the difficulties of closing one after they have been in business for some time.Finding someone to purchase an existing business is often hard, if not impossible, and succession plans can require years of additional work.And then you might be able to pay off only "It really depends on the type of debt and if it will free up some cash each month," says Ryan Michler, registered representative for Mc Partland Group Financial Services in St. "Your goal is just not to eliminate debt, but to get cash flow once again."For example, Michler says, if you are liquidating assets to put toward your home loan, but not paying it off, it will not free up extra cash since your payment amount doesn't change and will do nothing to improve your current financial situation."However, if it is an open line of credit or a revolving account and you're liquidating ,000 to pay off a significant portion, say ,000 in debt, then you are freeing cash and you can begin reducing the rest of the debt or saving again," he says.Michler adds that strapped consumers should also consider these factors when deciding whether to liquidate assets to pay off debt: George Rapp hadn't had a raise in at least three years when his employer was bought out in 2008.

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While no one enjoys paying creditors, it must be done.

Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash.

In most cases, a liquidation sale is a precursor to a business closing.

A business liquidation auction directly converts assets into cash, and it does so quickly.

Almost any physical asset that a business owns, including inventory, equipment and property, can be sold to the highest bidder at a liquidation auction.

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