28 U.S.C. § 3302 — Insolvency

FEDERAL · 28 U.S.C. · Chapter SUBCHAPTER D—FRAUDULENT TRANSFERS INVOLVING DEBTS

Insolvency

28 U.S.C. § 3302

Title28 — Judiciary and Judicial Procedure

ChapterSUBCHAPTER D—FRAUDULENT TRANSFERS INVOLVING DEBTS

This text of 28 U.S.C. § 3302 (Insolvency) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

28 U.S.C. § 3302.

Text

(a)In General.—Except as provided in subsection (c), a debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor's assets at a fair valuation.

(b)Presumption.—A debtor who is generally not paying debts as they become due is presumed to be insolvent.

(c)Calculation.—A partnership is insolvent under subsection (a) if the sum of the partnership's debts is greater than the aggregate, at a fair valuation, of—

(1)all of the partnership's assets; and

(2)the sum of the excess of the value of each general partner's non-partnership assets over the partner's non-partnership debts.

(d)Assets.—For purposes of this section, assets do not include property that is transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been trans

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(a) In General.—Except as provided in subsection (c), a debtor is insolvent if the sum of the debtor's debts is greater than all of the debtor's assets at a fair valuation.
(b) Presumption.—A debtor who is generally not paying debts as they become due is presumed to be insolvent.
(c) Calculation.—A partnership is insolvent under subsection (a) if the sum of the partnership's debts is greater than the aggregate, at a fair valuation, of—
(1) all of the partnership's assets; and
(2) the sum of the excess of the value of each general partner's non-partnership assets over the partner's non-partnership debts.
(d) Assets.—For purposes of this section, assets do not include property that is transferred, concealed, or removed with intent to hinder, delay, or defraud creditors or that has been transferred in a manner making the transfer voidable under this subchapter.
(e) Debts.—For purposes of this section, debts do not include an obligation to the extent such obligation is secured by a valid lien on property of the debtor not included as an asset.

Source Credit

History

(Added Pub. L. 101–647, title XXXVI, §3611, Nov. 29, 1990, 104 Stat. 4961.)

Editorial Notes

Statutory Notes and Related Subsidiaries

Effective Date
Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that effective date, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.

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Bluebook (online)

28 U.S.C. § 3302, Counsel Stack Legal Research, https://law.counselstack.com/usc/28/3302.