Cal. Codes » Civil Code / DIVISION 4. GENERAL PROVISIONS / PART 2. SPECIAL RELATIONS OF DEBTOR AND CREDITOR / TITLE 2. VOID AND VOIDABLE TRANSFERS AND UNDERTAKINGS / CHAPTER 1. Uniform Voidable Transactions Act
California Codes

Cal. Civil Code § 3439.02 (2026)

Uniform Voidable Transactions Act

✓ current as of May 2026
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(a)A debtor is insolvent if, at a fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets.

(b)A debtor that is generally not paying the debtor’s debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.

(c)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 chapter.

(d)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.

Notes of Decisions
Cited in 38 cases (5 in the last 5 years), 1949–2024 · leading case: Wolkowitz v. Beverly (In Re Beverly), 374 B.R. 221 (9th Cir. BAP 2007).
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Wolkowitz v. Beverly (In Re Beverly), 374 B.R. 221 (9th Cir. BAP 2007). · cites it 2× “Cal. Civ.Code § 3439.02. The Bankruptcy Code reaches the same result by defining "insolvent” to exclude exempt property from the asset side of the balance sheet.”
Mejia v. Reed, 74 P.3d 166 (Cal. 2003). “We find no triable issue of fact on the question of insolvency. Under the UFTA’s definition, a “debtor is insolvent if, at fair valuations, the sum of the debtor’s debts is greater than all of the debtor’s assets.”
SR Constr. v. Hall Palm Springs, 65 F.4th 752 (5th Cir. 2023). · cites it 2× “32 The only other provision to which construction company points the court, California Civil Code § 3439.02, is inapposite, as it simply defines insolvency without creating a private right of action.”
Medison Am., Inc. v. Preferred Med. Sys., LLC, 548 F. Supp. 2d 567 (W.D. Tenn. 2007). · cites it 2× “See Cal.Civ.Code § 3439.02(a) (West 2007). 1 Little’s statements about Medison’s financial instability are certainly consistent with the facts, and thus, not false or misleading.”
Tri-Cont'l Leasing Corp. v. Zimmerman, 485 F. Supp. 495 (N.D. Cal. 1980). · cites it 2× “Under the Act, a person is insolvent when the present fair saleable value of his nonexempt assets is less than the amount that will be required to pay his probable liability on his existing debts as they become absolute and matured.”
Bay Plastics, Inc. v. BT Com. Corp. (In Re Bay Plastics, Inc.), 187 B.R. 315 (Bankr. C.D. Cal. 1995). “Insolvency is defined in California Civil Code § 3439.02(a) (West Supp.”
Est. of Anderson, 68 Cal. App. 3d 1010 (Cal. Ct. App. 1977). · cites it 2× “Under such circumstances a claimant's right to obtain judgment against the estate would be rendered valueless.”
Kirkland v. Risso, 98 Cal. App. 3d 971 (Cal. Ct. App. 1979). “The fact of the conveyance of the deed of trust on the San Joaquin property to Lloyd was also freely admitted.”
Kendall v. Carbaat, 357 B.R. 553 (Bankr. N.D. Cal. 2006). “Cal. Civ.Code § 3439.02. Section 3439.03, in pertinent part, states as follows: Value is given for a transfer .”
Babcock v. Omansky, 31 Cal. App. 3d 625 (Cal. Ct. App. 1973). “) To bring the defendant within the coverage of such statute, Leon was asked about his various liabilities at or about the time of such transfers (May 1965); they included sums owed to parties named Levinstein and Silver, totalling $35,000, a lawsuit by Union Bank on a note for…”
McKnight v. Faber, 185 Cal. App. 3d 639 (Cal. Ct. App. 1986). “) In support of her motion for summary judgment and/or summary adjudication, Julie Faber presented her declaration stating that she and Melville Faber acquired the real property in April 1975; they recorded a declaration of homestead on the property in September 1975; she filed…”
Stearns v. Los Angeles City Sch. Dist., 21 A.L.R. 3d 164 (Cal. Ct. App. 1966). “” (Civ. Code, § 3439.02, subd. (a).) *736 The record reflects that Landier and the Company were unable to meet the payment due the Districts in October 1957.”
Show all 38 citing cases →
Cal. Civil Code § 3439.02(a): 8 cases
Wolkowitz v. Beverly (In Re Beverly), 374 B.R. 221 (9th Cir. BAP 2007). “Cal. Civ.Code § 3439.02. The Bankruptcy Code reaches the same result by defining "insolvent” to exclude exempt property from the asset side of the balance sheet.”
Medison Am., Inc. v. Preferred Med. Sys., LLC, 548 F. Supp. 2d 567 (W.D. Tenn. 2007). “See Cal.Civ.Code § 3439.02(a) (West 2007). 1 Little’s statements about Medison’s financial instability are certainly consistent with the facts, and thus, not false or misleading.”
Bay Plastics, Inc. v. BT Com. Corp. (In Re Bay Plastics, Inc.), 187 B.R. 315 (Bankr. C.D. Cal. 1995). “Insolvency is defined in California Civil Code § 3439.02(a) (West Supp.”
Espinosa v. Comm'r, 24 F. App'x 825 (9th Cir. 2001).
Delpit v. Comm'r, 61 T.C.M. 2303 (Tax Ct. 1991).
Cal. Civil Code § 3439.02(c): 2 cases
In re: Vill. Concepts, Inc. (9th Cir. BAP 2015).
In re: Vill. Concepts, Inc. (9th Cir. BAP 2015).
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