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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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Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
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