Prior to that determination, your legal obligations are unknown, and the debt is considered unliquidated.
For example, if a bank lends you $25,000 on a two-year promissory note, the amount due at the loan's maturity date is clear.
Any interest owed on the amount of the loan is also included in the liquidated debt amount.
Lynn Burbeck is a professional writer with over five years of experience writing for the Web.
She has published numerous articles for print and online media including "Grit" Magazine.
When a fixed dollar amount is known for that debt -- meaning the debt is clear and undisputed by either party -- the debt is known as a liquidated debt.
This differs from an unliquidated debt, in which a dollar amount is unknown.
Acknowledgments Machine-readable bibliographic record - MARC, RIS, Bib Te X Document Object Identifier (DOI): 10.3386/w16893 Published: Carmen M.
A loan used to finance the purchase of assets intended to be sold within a short period of time.
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.
It is a debt, the amount of which has been determined by agreement between the parties or by legal proceedings.
Another type of liquidated debt is legal judgements.