Insolvency
Sec. 12. (a) For purposes of this section, assets do not include
property that has been:
(1) transferred, concealed, or removed with intent to hinder,
delay, or defraud creditors; or
(2) transferred in a manner making the transfer voidable under
this chapter.
(b) For purposes of this section, debts 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 under this section.
(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.
(d) A debtor who is generally not paying the debtor's debts as they
become due is presumed to be insolvent. This presumption imposes
upon the party against whom the presumption is directed the burden
of proving that the nonexistence of insolvency is more probable than
its existence.
(e) A partnership is insolvent if the sum of the partnership's debts
is greater than the aggregate, at a fair valuation, of all of the
partnership's assets and the sum of the excess of the value of each
general partner's nonpartnership assets over each general partner's
nonpartnership debts.
As added by P.L.2-2002, SEC.3.
Last modified: May 24, 2006