Likvideerimate

Likvideerimate refers to a legal concept that allows a debtor to pay off their debts by selling off their assets. This process is often used by creditors to recover a portion of the amount owed to them when a debtor is unable to pay their debts in full. The term is derived from the Estonian language, where "likvideerime" roughly translates to "we are liquidating".

In Estonia, there is a specific procedure outlined in the Commercial Code for likvideerimate. This procedure allows a creditor to petition a court for the appointment of a liquidator to take charge of the debtor's assets and sell them off to repay the creditors. The process typically involves the liquidator appraising the value of the assets, selling them off, and distributing the proceeds to the creditors.

Likvideerimate is distinct from other forms of debt recovery, such as bankruptcy, in that it does not require the court to appoint an administrator or liquidator. Instead, the creditor can take on an active role in managing the sale of the assets and the distribution of the proceeds.

The purpose of likvideerimate is to protect the interests of both the creditors and the debtor. By selling off the debtor's assets, the creditor may recover a portion of the amount owed to them, while the debtor is relieved of debts that can no longer be serviced. Likvideerimate is a relatively common occurrence in Estonia, particularly for small and medium-sized enterprises.