Ohio Code 1336.02 – Insolvent debtor
(A)(1) A debtor is insolvent if the sum of the debts of the debtor is greater than all of the assets of the debtor at a fair valuation.
Terms Used In Ohio Code 1336.02
- Asset: means property of a debtor, but does not include any of the following:
(1) Property to the extent it is encumbered by a valid lien;
(2) Property to the extent it generally is exempt under nonbankruptcy law, including, but not limited to, section 2329. See Ohio Code 1336.01
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Debtor: means a person who is liable on a claim. See Ohio Code 1336.01
- 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.
- Property: means anything that may be the subject of ownership. See Ohio Code 1336.01
- Transfer: means every direct or indirect, absolute or conditional, and voluntary or involuntary method 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 Ohio Code 1336.01
(2) A debtor who generally is not paying his debts as they become due is presumed to be insolvent.
(B) A partnership is insolvent under division (A)(1) of this section if the sum of the debts of the partnership is greater than the aggregate, at a fair valuation, of all of the assets of the partnership and the sum of the excess of the value of the nonpartnership assets of each general partner over the nonpartnership debts of the general partner.
(C) For purposes of this section:
(1) “Assets” 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 fraudulent under section 1336.04 or 1336.05 of the Revised Code.
(2) “Debts” do not include an obligation to the extent that it is secured by a valid lien on property of the debtor not included as an asset.