Delaware Code

6 Del. C. § 1302 (2026)

Insolvency

✓ current as of May 2026

Find cases: SyfertCases citing this section DE-DELCdelcode.delaware.gov JustiaTitle on Justia CornellLII Search CasesGoogle Scholar

(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.

(c) A partnership is insolvent under subsection (a) of this section 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.

(d) 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.

(e) 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.

70 Del. Laws, c. 434, § 1; 70 Del. Laws, c. 186, § 1;

Notes of Decisions

Cited in 12 cases (6 in the last 5 years), 1967–2026 · leading case: ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008).

Sort: Relevance Newest Treatment

ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008). · cites it 2× “§ 25:2-23(b); 6 Del. C. § 1302(a). According to New Jersey and Delaware’s version of the UFTA, a debtor is presumed to be balance-sheet insolvent if it “is generally not paying debts as they become due.”

PHP Liquidating, LLC v. Robbins (In Re PHP Healthcare Corp.), 128 F. App'x 839 (3rd Cir. 2005). “§ 548 (2002) with 6 Del. C. §§ 1302 -1306 (2002). To properly plead a fraudulent transfer claim against the Robbins Family, the Liquidating Company would have had to allege either, pursuant to Section 548(a)(1)(A), that the debtor redeemed the stock with actual intent to defraud…”

Solution Trust v. 2100 Grand LLC (In re AWTR Liquidation Inc.), 548 B.R. 300 (Bankr. C.D. Cal. 2016). “Compare 6 Del. Code § 1302 (fraudulent transfer statute, not fiduciary duty) ("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.”

United States v. West, 299 F. Supp. 661 (D. Del. 1969). “” 6 Del.C. § 1302(a). 7 . From the testimony adduced at the first hearing it is quite apparent that although legal title to the property in question was conveyed to their son, David, Mr.”

United States v. van der Horst, 270 F. Supp. 365 (D. Del. 1967). · cites it 2× “Title 6 Del.C. § 1302(a) defines insolvency as follows: “A person is insolvent when the present fair salable value of his assets is less than the amount that will be *368 required to pay his probable liability on his existing debts as they become absolute and matured.”

CIBC Bank USA v. JH Portfolio Debt Equities, LLC (Del. Super. Ct. 2021). · cites it 2× “104 6 Del. C. § 1302(b). 105 SAC ¶¶ 104, 116-118.”

BV Advisory Partners, LLC v. Quantum Computing, Inc. (Del. Ch. 2024). · cites it 2× “” 6 Del. C. § 1302. 52 Plaintiff has not stated a claim for constructive fraudulent transfer under Section 1304(a)(2).”

Amerscape, LLC v. Acacia Com. Servs., Inc. (Del. Super. Ct. 2022). “28 6 Del. C. § 1302(b). 10 allegation that Defendants retained possession or control of the property after the transfer.”

Richard F. Burkhart v. Genworth Fin., Inc. (Del. Ch. 2023). “” 6 Del. C. § 1302(a). The parties have framed the question of relevancy in terms of DUFTA’s concept of a “fair valuation.”

Cleveland-Cliffs Burns Harbor LLC v. Boomerang Tube, LLC (Del. Ch. 2023). “111 6 Del. C. § 1302(b). 112 Am. Compl. ¶¶ 38, 82-88.”

Monroe (D. Del. 2026). “” Cleveland-Cliffs, 2023 WL 5688392 , at *9 (quoting 6 Del. C. § 1302(b)). Collectively, these allegations plausibly support (1) a transfer by USA of $90 million of equity, (2) for no consideration, and (3) leaving USA with unreasonably small or no assets relative to its…”

Quadrant Structured Prods. Co., Ltd. v. Vertin (Del. Ch. 2015). “” 6 Del. C. § 1302(a). “A debtor who is generally not paying debts as they become due is presumed to be insolvent.”

— 6 Del. C. § 1302(a) — 6 cases

ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008). “§ 25:2-23(b); 6 Del. C. § 1302(a). According to New Jersey and Delaware’s version of the UFTA, a debtor is presumed to be balance-sheet insolvent if it “is generally not paying debts as they become due.”

United States v. van der Horst, 270 F. Supp. 365 (D. Del. 1967). “Title 6 Del.C. § 1302(a) defines insolvency as follows: “A person is insolvent when the present fair salable value of his assets is less than the amount that will be *368 required to pay his probable liability on his existing debts as they become absolute and matured.”

Richard F. Burkhart v. Genworth Fin., Inc. (Del. Ch. 2023). “” 6 Del. C. § 1302(a). The parties have framed the question of relevancy in terms of DUFTA’s concept of a “fair valuation.”

BV Advisory Partners, LLC v. Quantum Computing, Inc. (Del. Ch. 2024). “” 6 Del. C. § 1302. 52 Plaintiff has not stated a claim for constructive fraudulent transfer under Section 1304(a)(2).”

— 6 Del. C. § 1302(b) — 5 cases

CIBC Bank USA v. JH Portfolio Debt Equities, LLC (Del. Super. Ct. 2021). “104 6 Del. C. § 1302(b). 105 SAC ¶¶ 104, 116-118.”

Amerscape, LLC v. Acacia Com. Servs., Inc. (Del. Super. Ct. 2022). “28 6 Del. C. § 1302(b). 10 allegation that Defendants retained possession or control of the property after the transfer.”

Cleveland-Cliffs Burns Harbor LLC v. Boomerang Tube, LLC (Del. Ch. 2023). “111 6 Del. C. § 1302(b). 112 Am. Compl. ¶¶ 38, 82-88.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.