Insolvency

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  • (a) 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) A debtor who is generally not paying debts as they become due is presumed to be insolvent.

  • (c) A partnership is insolvent under subsection (a) if the sum of the partnership's debts is greater than the aggregate of all of the partnership's assets, at a fair valuation, and the sum of the excess of the value of each general partner's nonpartnership assets over the partner's nonpartnership debts.

  • (d) Assets under this section do not include property that has been 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 chapter.

  • (e) Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset.


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