What does it mean to liquidate assets?

To liquidate assets means to convert non-liquid assets to liquid assets by selling them on the open market. Individuals and companies can liquidate assets. This can be done voluntarily or may be forced through the bankruptcy process.

Liquidating is done by converting property or assets into cash or cash equivalents. There may be instances where people need to prove that they have assets available to liquidate for them to be able to secure a loan.