Definition - What does Liabilities mean?
A liability is something that a person owes financially for or which they owe money on. Liabilities are items that a person is responsible for in that regard. If a person takes a loan, they have a liability to repay the loan and they are legally obliged to do so. In terms of debt consolidation, a person would try to amalgamate certain liabilities to create less of them and try to make them more manageable.
Justipedia explains Liabilities
If a person is in trouble financially and are forced into bankruptcy, they are legally obligated to list all of their assets in order for a court appointed representative to review them and try to find a way to pay the liabilities over a longer time period at a decreased rate. Companies are legally obligated to list all of their financial liabilities for tax purposes and for accounting standards.
What Are the Legal Rights of Customers During Debt Collection?