---
kind: "section"
citation: "28 U.S.C. § 3302"
title: "28"
title_heading: "Judiciary and Judicial Procedure"
number: "3302"
heading: "Insolvency"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/28/3302"
units:
  - "Part VI — Particular Proceedings"
  - "Chapter 176 — Federal Debt Collection Procedure"
  - "Subchapter D — Fraudulent Transfers Involving Debts"
---

# §3302. Insolvency

- (a) **In General.—** Except as provided in [subsection (c)](#c), a [debtor](/usc/28/3002.md?p=4) is insolvent if the sum of the [debtor](/usc/28/3002.md?p=4)’s [debts](/usc/28/3002.md?p=3) is greater than all of the [debtor](/usc/28/3002.md?p=4)’s [assets](/usc/28/3301.md?p=2) at a fair valuation.
- (b) **Presumption.—** A [debtor](/usc/28/3002.md?p=4) who is generally not paying [debts](/usc/28/3002.md?p=3) as they become due is presumed to be insolvent.
- (c) **Calculation.—** A partnership is insolvent under [subsection (a)](#a) if the sum of the partnership’s [debts](/usc/28/3002.md?p=3) is greater than the aggregate, at a fair valuation, of—
  - (1) all of the partnership’s [assets](/usc/28/3301.md?p=2); and
  - (2) the sum of the excess of the value of each general partner’s non-partnership [assets](/usc/28/3301.md?p=2) over the partner’s non-partnership [debts](/usc/28/3002.md?p=3).
- (d) **Assets.—** For purposes of this section, [assets](/usc/28/3301.md?p=2) do not include [property](/usc/28/3002.md?p=12) that is transferred, concealed, or removed with intent to hinder, delay, or defraud [creditors](/usc/28/3301.md?p=4) or that has been transferred in a manner making the transfer voidable under this subchapter.
- (e) **Debts.—** For purposes of this section, [debts](/usc/28/3002.md?p=3) do not include an obligation to the extent such obligation is secured by a valid lien on [property](/usc/28/3002.md?p=12) of the [debtor](/usc/28/3002.md?p=4) not included as an [asset](/usc/28/3301.md?p=2).

## Source credit

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

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 180 days after Nov. 29, 1990, and applicable with respect to certain actions for debts owed the United States pending in court on that effective date, see section 3631 of Pub. L. 101–647, set out as a note under section 3001 of this title.