28 U.S.C. § 3302
Section 3302 · Insolvency
Amended 1 time on record
Applied in 14 court decisions — leading case Freeland v. Enodis Corp. (2008)
Most recently applied in Gordon v. Hackenberry (In re Alpha Protective Servs., Inc.) (October 2018)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
(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.