25-6-103.  Insolvency.

(1)  A debtor is insolvent if, at fair valuation, the sum of the debtor’s debts is greater than all of the debtor’s assets.

Terms Used In Utah Code 25-6-103

  • Asset: means property of a debtor, but does not include:
(a) property to the extent it is encumbered by a valid lien;
(b) property to the extent it is generally exempt under nonbankruptcy law; or
(c) an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. See Utah Code 25-6-102
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Debtor: means a person that is liable on a claim. See Utah Code 25-6-102
  • 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.
  • Property: means anything that may be the subject of ownership. See Utah Code 25-6-102
  • Transfer: means every mode, direct or indirect, absolute or conditional, or voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset, and includes payment of money, release, lease, and creation of a lien or other encumbrance. See Utah Code 25-6-102
    • (2) 

    (a)  A debtor that is generally not paying the debtor’s debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent.

    (b)  The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.

    (3)  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.

    (4)  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.

    Renumbered and Amended by Chapter 204, 2017 General Session

      Previous section
    Next section  
     Part 1 Contents