How to Liquidate Debt

Many people dispute debts that they feel are unfair or unowed. But if you have a debt and you know that you owe it, then you should liquidate your debt. Liquidating your debt means that you acknowledge the debt is owed and then you pay it off. If a dispute occurs, a debt is no longer considered liquidated. You must know the entire amount of the debt for it to be considered liquidated and then sell your various assets to settle the debt.

Instructions

1

Contact each creditor who you believe has a valid claim against you.

2

Request a letter stating the exact amount of the debt. Return a letter acknowledging that you owe the debt and intend to pay it off.

3

Take stock of your individual assets. Be sure to break down the larger assets into smaller, salable items. If you own a business, for example, you may have furniture, a building or money owed to you by customers.

4

Sell any items that you can for as much money as possible.

5

Use the money you earn to pay off the debt you've acknowledged to your creditors.