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Simple English definitions for legal terms

twelve-month liquidation

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A quick definition of twelve-month liquidation:

Twelve-month liquidation is a process where a company sells its assets to pay off its debts within a year. This process is done to settle debts and convert assets into cash. The company cannot recognize any gains or losses on property sold within that time frame. The inventory may not be included unless a bulk sale occurs. This process is also used in bankruptcy cases where a debtor's nonexempt property is collected, converted to cash, and distributed to creditors. The debtor hopes to obtain a discharge, which releases them from any further personal liability for pre-bankruptcy debts.

A more thorough explanation:

Definition: Twelve-month liquidation refers to the process of converting a company's assets into cash within 12 months to settle debts. This process can occur through a special election, partial liquidation, or bankruptcy.

Examples:

  • One-month liquidation: This is a special election available to certain shareholders that determines how distributions received in liquidation will be treated for federal income-tax purposes. To qualify for the election, the corporation must be completely liquidated within one month.
  • Partial liquidation: This type of liquidation does not completely dispose of a company's assets. Instead, some corporate assets are distributed to shareholders on a pro rata basis, and the corporation continues to operate in a restricted form.
  • Bankruptcy: Under Chapter 7 of the Bankruptcy Code, a debtor's nonexempt property is collected, converted to cash, and distributed to creditors. The debtor hopes to obtain a discharge, which releases them from any further personal liability for prebankruptcy debts.

These examples illustrate the different ways in which a company can undergo a twelve-month liquidation. Whether through a special election, partial liquidation, or bankruptcy, the goal is to convert assets into cash to settle debts within a 12-month timeframe.

twelve-day rule | Twelve Tables

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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