What does distressed mean in law?
In the context of commercial real estate finance, the term “distressed” refers to a property that is in foreclosure or is in danger of defaulting on its debt service. When a borrower files for bankruptcy, the lender is said to be distressed. In some cases, a property will be “distressed” because of a decline in the property’s value rather than because of default on a loan. A bank may declare a property distressed when it determines that the property is
What does distressed law firm mean?
A distressed attorney is a term used to describe an attorney who is in financial distress. The term is used when the attorney is unable to pay his or her debts. This can be for a variety of reasons, such as owing money to the IRS or a judgment that could prevent the attorney from paying his or her employees.
What does distressed company mean in law?
A company is said to be distressed when it is operating in a state of financial difficulty. This means that it is operating with a loss, or the ability to pay its creditors in full within a reasonable time is in question. In this instance, the company will be unable to continue operating as a going concern.
What does distressed debt in law mean?
A quick way to determine whether a loan is distressed is to look at the loan-to-value ratio. The loan-to-value ratio is the amount of the loan you owe versus the current market value of the property securing the loan. If the value of the property drops below the amount of the loan, it can be said that the loan is distressed. Banks are more likely to consider a loan to be distressed if the loan-to-value ratio is over 90 percent of the current market
What does distressed debt mean in law?
If you owe money to a company, then that debt is likely to be referred to as debt in distress. While there are many different types of debts and debt in distress, the most common type of distressed debt is a loan or credit card debt that is behind in payments and is likely to be charged an additional fee or interest.
