Maine Revised Statutes Title 14 Sec. 3573 – Insolvency
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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.
[PL 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.
[PL 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.
[PL 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.
[PL 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.
[PL 1985, c. 641, §3 (NEW).]
SECTION HISTORY
PL 1985, c. 641, §3 (NEW).