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28 USC § 3302 - Insolvency 

---
identifier: "/us/usc/t28/s3302"
source: "usc"
legal_status: "official_legal_evidence"
title: "28 USC § 3302 - Insolvency"
title_number: 28
title_name: "JUDICIARY AND JUDICIAL PROCEDURE"
section_number: "3302"
section_name: "Insolvency"
chapter_number: 176
chapter_name: "FEDERAL DEBT COLLECTION PROCEDURE"
subchapter_number: "D"
subchapter_name: "FRAUDULENT TRANSFERS INVOLVING DEBTS"
part_number: "VI"
part_name: "PARTICULAR PROCEEDINGS"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 101–647, title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4961.)"
---

# § 3302. Insolvency

**(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.

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**Source Credit**: (Added Pub. L. 101–647, title XXXVI, § 3611, Nov. 29, 1990, 104 Stat. 4961.)

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 180 days after , and applicable with respect to certain actions for debts owed the United States pending in court on that effective date, see , set out as a note under .