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LSDefine

Simple English definitions for legal terms

claim dilution

Read a random definition: disparate impact

A quick definition of claim dilution:

Claim Dilution: When someone owes money to many people, but they don't have enough money to pay everyone back, some people might not get all their money back. This is called claim dilution. It means that the chances of getting all the money owed to you are lower, and you might have to wait a long time to get any money back.

A more thorough explanation:

Claim dilution is a term used in bankruptcy that refers to the reduction in the likelihood that a debtor's creditors will be fully repaid. This reduction takes into account the time value of money, which means that the longer it takes for a creditor to be repaid, the less valuable that repayment becomes.

For example, let's say a company goes bankrupt and owes money to several creditors. If the bankruptcy process takes a long time and the company's assets are slowly sold off to repay the creditors, the value of each creditor's claim may be reduced due to the time value of money. This means that even if the company eventually repays all of its debts, the creditors may not receive the full value of their claims.

Another example of claim dilution can be seen in the case of a personal injury lawsuit. If a plaintiff wins a lawsuit and is awarded damages, but the defendant is unable to pay the full amount immediately, the value of the damages may be reduced over time due to inflation and other factors. This means that even if the plaintiff eventually receives all of the damages they were awarded, the value of those damages may be less than what they were originally worth.

claim differentiation | claim in equity

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18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
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