Legal Definitions - fixed liability

Fixed liability refers to a type of debt that is permanent and usually evidenced by a bond or debenture. It is a long-term debt that will not come due within the next year.

For example, a company may issue bonds to raise money for a new project. The bondholders are owed a fixed amount of money, which is the fixed liability of the company.

Another example is a mortgage, which is a fixed liability for the homeowner. The homeowner owes a fixed amount of money to the lender over a long period of time.