what are examples of liabilities that individuals or households have 
an individual s or household s net worth is also arrived at by balancing assets against liabilities liabilities for most households will include taxes due bills that must be paid rent or mortgage payments loan interest and principal due the work owed may also be construed as a liability if you re prepaid for performing work or a service the bottom linea liability is anything you owe to another individual or an entity such as a lender or tax authority the term can also refer to a legal obligation or an action you re obligated to take both businesses and individuals can have liabilities your loan is a liability if you borrow money to purchase a car the portion of the vehicle that you ve already paid for is an asset financial liabilities can be either long term or short term depending on whether you ll be paying them off within a year 