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Simple English definitions for legal terms

equity insolvency

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A quick definition of equity insolvency:

Equity insolvency is a situation where a company cannot pay its debts on time. This means that the company owes more money than it has. When a company is equity insolvent, it is not allowed to give any money to its shareholders. This is because the company needs to use all its money to pay off its debts first.

A more thorough explanation:

Equity insolvency is a type of insolvency where a debtor is unable to meet its obligations as they become due. This means that the debtor cannot pay their debts on time or in the usual course of business.

For example, if a company owes money to its suppliers and cannot pay them on time, it is considered to be equity insolvent. This type of insolvency prevents the company from making any distributions to its shareholders.

Another type of insolvency is balance-sheet insolvency, which occurs when a debtor's liabilities exceed its assets. This type of insolvency also prevents a corporation from making distributions to its shareholders.

It is important to note that insolvency is different from bankruptcy. Bankruptcy is a legal process that allows a debtor to restructure or eliminate their debts, while insolvency simply means that the debtor cannot pay their debts.

equity financing | equity jurisprudence

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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.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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