Wisconsin Statutes 242.02 – Insolvency
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Wisconsin Statutes 242.02
- 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.
- Property: includes real and personal property. See Wisconsin Statutes 990.01
(1) In this section:
(a) “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 voidable under this chapter.
(b) “Debts” 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.
(2) 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.
(3) A debtor who is generally not paying debts as they become due is presumed to be insolvent.
(4) A partnership is insolvent under sub. (2) if the sum of the partnership’s debts is greater than the aggregate, at a fair valuation, of all of the partnership’s assets and the sum of the excess of the value of each general partner’s nonpartnership assets over the partner’s nonpartnership debts.