28 U.S.C. § 3302

Current through P.L. 118-106 (published on www.congress.gov on 10/04/2024)

Section 3302 - Insolvency

(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.

28 U.S.C. § 3302

Added Pub. L. 101-647, §3611, 104 Stat. 4961.

STATUTORY NOTES AND RELATED SUBSIDIARIES

EFFECTIVE DATESection 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.

Court: "Court" means any court created by the Congress of the United States, excluding the United States Tax Court.
Debtor: "Debtor" means a person who is liable for a debt or against whom there is a claim for a debt.
Property: "Property" includes any present or future interest, whether legal or equitable, in real, personal (including choses in action), or mixed property, tangible or intangible, vested or contingent, wherever located and however held (including community property and property held in trust (including spendthrift and pension trusts)), but excludes-(A) property held in trust by the United States for the benefit of an Indian tribe or individual Indian; and(B) Indian lands subject to restrictions against alienation imposed by the United States.
United States: "United States" means-(A) a Federal corporation;(B) an agency, department, commission, board, or other entity of the United States; or(C) an instrumentality of the United States.