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2026-07-06 10:51:44 -04:00

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LegalText 28 U.S.C. § 3302 Insolvency us united_states_code code_section 28 JUDICIARY AND JUDICIAL PROCEDURE 176 FEDERAL DEBT COLLECTION PROCEDURE 3302 28 U.S.C. § 3302 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc28@119-100.zip /us/usc/t28/s3302 data/legal/raw/us/code/title-28/usc28.xml 3d32f618134e23615a3dff93a9bc7f6fbab2fd487ef004db3eb36df438a25fd2 3390f867a2c02f5d0c496269da780795fe19663a090a3040c64a9ee0a541cdcf 37b84297de641b02c9a1d63c2437736dab679790dfdc9c70b1ea5e603a12b156 2026-07-04 official
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28 U.S.C. § 3302 - Insolvency

Text

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

(1) all of the partnerships assets; and

(2) the sum of the excess of the value of each general partners non-partnership assets over the partners 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.

(Added Pub. L. 101647, title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4961.)

Notes

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. 101647, set out as a note under section 3001 of this title.