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Simple English definitions for legal terms

balance-sheet insolvency

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A quick definition of balance-sheet insolvency:

Balance-sheet insolvency is when a person or company owes more money than they have in assets. This means they cannot pay their debts and bills. It is different from equity insolvency, which is when a person or company cannot pay their bills as they come due. In some states, balance-sheet insolvency stops a company from giving money to its shareholders.

A more thorough explanation:

Definition: Balance-sheet insolvency is a type of insolvency where a debtor's liabilities (what they owe) are greater than their assets (what they own).

For example, if a company owes $100,000 in debt but only has $50,000 in assets, they are balance-sheet insolvent.

This type of insolvency can prevent a corporation from making distributions to its shareholders, according to some state laws.

Example: ABC Corporation has $500,000 in debt and $400,000 in assets. They are unable to pay their debts as they fall due, making them balance-sheet insolvent. As a result, they are not allowed to make any distributions to their shareholders until they can improve their financial situation.

This example illustrates how balance-sheet insolvency occurs when a company's liabilities exceed their assets, making it difficult for them to meet their financial obligations.

balance of sentence suspended | balance-sheet test

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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