Toes in a terrible state (7)
I believe the answer is:
estonia
'state' is the definition.
(Estonia is a country)
'toes in a terrible' is the wordplay.
'terrible' indicates anagramming the letters.
'toes'+'in'+'a'='toesina'
'toesina' with letters rearranged gives 'ESTONIA'.
(Other definitions for estonia that I've seen before include "So eat in poorly on the Baltic Sea" , "European country, capital Tallinn" , "'So eat in here in Tallinn, say (7)'" , "Land" , "European republic, became independent again in 1991" .)