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LSDefine

Simple English definitions for legal terms

claim dilution

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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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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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