1. Debts greater than assets.  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.
[ 1985, c. 641, §3 (NEW) .]

Terms Used In Maine Revised Statutes Title 14 Sec. 3573

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
2. Presumption of insolvency.  A debtor who is generally not paying his debts as they become due is presumed to be insolvent.
[ 1985, c. 641, §3 (NEW) .]

3. Partnership insolvency.  A partnership is insolvent under subsection 1 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.
[ 1985, c. 641, §3 (NEW) .]

4. Assets; exclusion.  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 Act.
[ 1985, c. 641, §3 (NEW) .]

5. Debts.  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.
[ 1985, c. 641, §3 (NEW) .]

SECTION HISTORY

1985, c. 641, §3 (NEW).