Legal Memorandum: Insolvency of Debtor in MN

Issue: Under Minnesota law, when is a debtor insolvent?

Area of Law: Bankruptcy & Creditors Rights
Keywords: A debtor; Insolvent
Jurisdiction: Federal, Minnesota
Cited Cases: None
Cited Statutes: Minn. Stat. § 513.42; UFTA § 2
Date: 01/01/2013

Minn. Stat. § 513.42 describes the circumstances constituting “insolvency”:  “(a) 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.  (b) A debtor who is generally not paying debts as they become due is presumed to be insolvent.”  Minn. Stat. § 513.42; see also UFTA § 2 (same). 


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