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LSDefine

Simple English definitions for legal terms

insolvency

Read a random definition: transvestitive fact

A quick definition of insolvency:

Insolvency means that someone or a company owes money to others but cannot pay it back. This can happen when they have more debts than they have money or when they don't have enough money to pay their debts when they are due. It can lead to bankruptcy, which is when a court takes control of the person or company's finances to help pay back the debts.

A more thorough explanation:

Insolvency refers to a situation where a person or company cannot pay the debts they owe. For example, a company may become insolvent when it is unable to repay its creditors on time, which can lead to bankruptcy. There are two main types of insolvency:

  • Balance sheet insolvency: This occurs when a person or company's liabilities (what they owe) exceed their assets (what they own). For example, if a company owes $100,000 but only has assets worth $80,000, it is balance sheet insolvent.
  • Cash flow insolvency: This occurs when a person or company cannot pay their debts as they fall due. For example, if a company owes $10,000 but only has $5,000 in the bank, it is cash flow insolvent.

Insolvency can have serious consequences for a person or company, including bankruptcy and legal action from creditors. However, it is important to note that insolvency is not the same as bankruptcy. Bankruptcy is a legal process that can be used to deal with insolvency, but it is not the only option.

For example, if a person or company is balance sheet insolvent, they may be able to sell assets to pay off their debts. If they are cash flow insolvent, they may be able to negotiate payment plans with their creditors.

Insolvency can also apply to countries. When a country is unable to pay its debts, it is said to be insolvent. However, the legal and political processes for dealing with sovereign insolvency are different from those for individuals and companies.

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16:45
@bigfatsloth: an early welcome to north carolina :3 i will NOT be joining you in the forest unfortunately
NosyBeagle
16:47
lol same but the second in command gives me tasks
NosyBeagle
16:47
none today tho
NosyBeagle
16:47
it's almost 4pm and i play nyt sudoku at 4pm and i am thrilled. this is my life now
globalcitizen
17:22
Waitlists serve as little gestures to aa era on the way out
globalcitizen
17:22
That’s nice
ParallelAgreeableOrangutan
17:34
To what?
Anyone get uva feeler/auto email about waitlist
ParallelAgreeableOrangutan
18:28
I got the email. Based on the language in the email, I'd be surprised if many feelers were going out
I mena, the same is true for all of them lmfao WL =R
ParallelAgreeableOrangutan
18:51
That's demonstrably not true. I've gotten feelers and others in this chat have as well. Not sure why you're asking questions when you clearly aren't interested in the answers
hello
19:22
hey yall
ParallelAgreeableOrangutan
19:25
Hi llama!!
21:15
@ParallelAgreeableOrangutan: How are you!
ParallelAgreeableOrangutan
22:02
tbh kinda losing my mind, I'm visiting my parents in my childhood home and whenever I do this I remember why I never do this aahhaha
ParallelAgreeableOrangutan
22:02
My dog likes it here tho
ParallelAgreeableOrangutan
22:02
How are youuuuu?
22:26
@ParallelAgreeableOrangutan: Deep/tough. Feels. Im well working on a project so im happy :)
22:28
should i hit the dmt pen in the sauna and meet god
ParallelAgreeableOrangutan
22:31
Ooh what kind of project? Work, passion, neither, both?
ParallelAgreeableOrangutan
22:31
@NemoPropheta: do it do it
22:37
alright day before my lsat ill hit a blinker in the sauna and become one with the test
22:47
@ParallelAgreeableOrangutan: law school data so just passion.
22:47
@NemoPropheta: noo they drug test before the LSAT! U will get flagged!
ParallelAgreeableOrangutan
23:19
I'm intrigued llama
ParallelAgreeableOrangutan
23:21
Holdddddup all that number crunching on your lsd profile is your work? Damn
ParallelAgreeableOrangutan
23:21
I don't visit y'all's profiles enough, clearly
NarrowFaithfulCougar
0:22
@NemoPropheta: Ahh yeah, the Sauna. That's some good Nordic shit. Beats the hot tub hands down. Plus everyone is naked.
1:23
@ParallelAgreeableOrangutan: got that weaponized autism in gear, we out here.
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