Forced Selling (Forced Liquidation)

Sometimes, we just really, really (really) need some liquidity in our lives. We’re not talking about your morning OJ...we’re talking about sweet, hard cash.

Forced selling is when you have to sell things...liquify them...to get some liquid cash in your life. If you live in America and have some semi-minor thing happen to you (maybe you broke your toe or got bit by a lil' snakey snake), you might be forced to sell your stuff to pay for medical bills. If you get hit with something bigger, like cancer or paralysis, you’re most definitely going to be in a forced selling situation (unless, you know, you’re ridiculously rich or well-covered by your insurance).

Other things that can cause force selling includes someone dying, divorce (War of the Roses, anyone?), or the housing market going under for a homeowner. Forced selling can happen to businesses too, like if a recession in a country causes everyone to jump ship. (Uh...Greece...yeah. That was unfortunate.).