2011 Michigan Compiled Laws
Chapter 566 — FRAUDULENT CONVEYANCES AND CONTRACTS
Act 434 of 1998 — UNIFORM FRAUDULENT TRANSFER ACT (566.31 - 566.43)
Section 566.32 — Insolvency.
UNIFORM FRAUDULENT TRANSFER ACT (EXCERPT)
Act 434 of 1998
(1) 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.
(2) A debtor who is generally not paying his or her debts as they become due is presumed to be insolvent.
(3) A partnership is insolvent under subsection (1) 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.
(4) As used 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 act.
(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.
History: 1998, Act 434, Imd. Eff. Dec. 30, 1998
Disclaimer: These codes may not be the most recent version. Michigan may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.