Liquidation analysis occurs many times when a company files for chapter 11 bankruptcy. When a company files for bankruptcy, it must provide to its creditors a plan of reorganization and disclosure statements. Part of that reorganization plan includes a liquidation analysis. This liquidation analysis states a company’s assets and liabilities, and is meant to determine whether or not reorganization would be more beneficial to creditors, or to simply liquidate the company’s assets to pay as much debt as possible.