ILCS » Chapter 740 · Act 160
Illinois Compiled Statutes

740 ILCS 160/3 (2026)

(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

✓ current as of May 2026
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(740 ILCS 160/3) (from Ch. 59, par. 103)
    Sec. 3. (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 his debts as they become due is presumed to be insolvent.
    (c) A partnership is insolvent under subsection (a) 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 Act.
    (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.
(Source: P.A. 86-814.)

    
Notes of Decisions
Cited in 32 cases (6 in the last 5 years), 1998–2026 · leading case: Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005).
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Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). · cites it 2× “The UFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Tower Investors, LLC v. 111 East Chestnut Consultants, Inc., 864 N.E.2d 927 (Ill. App. Ct. 2007). “Defendants claim Tower’s forbearance was insufficient to support the agreement because Tower knew that Consultants was insolvent, meaning that the $350,000 debt was uncollectible. We disagree. An entity is insolvent if the sum of its debts is greater than the fair valuation of…”
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009). · cites it 2× “” 740 ILCS 160/3(a). The IUFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Doly v. Chang (In Re Joy Recovery Tech. Corp.), 286 B.R. 54 (Bankr. N.D. Ill. 2002). “” 740 ILCS 160/3(a). This is the so-called balance sheet test for insolvency, which is the same under the Bankruptcy Code.”
Edgewater Med. Ctr. v. Edgewater Prop. Co. (In Re Edgewater Med. Ctr.), 373 B.R. 845 (Bankr. N.D. Ill. 2007). “See 740 ILCS 160/3; 11 U.S.C. § 101 (32). 16 .”
Dan Jt. Venture Iii, L.P. v. Touris, 598 B.R. 430 (E.D. Ill. 2019). · cites it 2× “" 740 ILCS 160/3(a). The IUFTA further provides that "[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Grigsby v. Carmell (In Re Apex Auto. Warehouse, L.P.), 238 B.R. 758 (Bankr. N.D. Ill. 1999). · cites it 2× “740 ILCS 160/3(a). A debtor who generally is not paying its debts on time is presumed to be insolvent.”
Technic Eng'g, Ltd. v. Basic Envirotech, Inc., 53 F. Supp. 2d 1007 (N.D. Ill. 1999). · cites it 2× “” 740 ILCS 160/3(a). Further, “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Baldi v. Samuel Son & Co., Ltd., 548 F.3d 579 (7th Cir. 2008). “§ 101 (32)(A); 740 ILCS 160/3(a). The bankruptcy judge found that Longview had not been insolvent during the period, running from February 26, 2001, to April 1, 2002, in which the transfers were made; and the district judge affirmed.”
Doctors Hosp. of Hyde Park, Inc. v. Desnick (In Re Doctors Hosp. of Hyde Park, Inc.), 360 B.R. 787 (Bankr. N.D. Ill. 2007). “See 740 ILCS 160/3 (“A debt- or is insolvent if the sum of the debtor’s debts is greater than all of the debtor’s assets at a fair valuation.”
Gray v. Mundelein Coll., 695 N.E.2d 1379 (Ill. App. Ct. 1998). “§ 101 (32)(A) (1994); 740 ILCS 160/3 (West 1996). There was no judicial finding of insolvency here.”
Paloian v. LaSalle Bank Nat'l Ass'n (In re Doctors Hosp. of Hyde Park, Inc.), 507 B.R. 558 (Bankr. N.D. Ill. 2013). “§ 101 (32)(A); see also 740 ILCS 160/3(a). Whether a debtor is insolvent under the balance sheet test is determined by analyzing what a willing buyer would have given for the debtor’s entire package of assets and liabilities at the relevant time.”
Show all 32 citing cases →
— 740 ILCS 160/3(a) — 19 cases
Doly v. Chang (In Re Joy Recovery Tech. Corp.), 286 B.R. 54 (Bankr. N.D. Ill. 2002). “” 740 ILCS 160/3(a). This is the so-called balance sheet test for insolvency, which is the same under the Bankruptcy Code.”
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “The UFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Baldi v. Samuel Son & Co., Ltd., 548 F.3d 579 (7th Cir. 2008). “§ 101 (32)(A); 740 ILCS 160/3(a). The bankruptcy judge found that Longview had not been insolvent during the period, running from February 26, 2001, to April 1, 2002, in which the transfers were made; and the district judge affirmed.”
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009). “” 740 ILCS 160/3(a). The IUFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Paloian v. LaSalle Bank Nat'l Ass'n (In re Doctors Hosp. of Hyde Park, Inc.), 507 B.R. 558 (Bankr. N.D. Ill. 2013). “§ 101 (32)(A); see also 740 ILCS 160/3(a). Whether a debtor is insolvent under the balance sheet test is determined by analyzing what a willing buyer would have given for the debtor’s entire package of assets and liabilities at the relevant time.”
— 740 ILCS 160/3(b) — 8 cases
Grochocinski v. Zeigler (In Re Zeigler), 320 B.R. 362 (Bankr. N.D. Ill. 2005). “The UFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Grochocinski v. Schlossberg, 402 B.R. 825 (N.D. Ill. 2009). “” 740 ILCS 160/3(a). The IUFTA also provides that “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Dan Jt. Venture Iii, L.P. v. Touris, 598 B.R. 430 (E.D. Ill. 2019). “" 740 ILCS 160/3(a). The IUFTA further provides that "[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Grigsby v. Carmell (In Re Apex Auto. Warehouse, L.P.), 238 B.R. 758 (Bankr. N.D. Ill. 1999). “740 ILCS 160/3(a). A debtor who generally is not paying its debts on time is presumed to be insolvent.”
Technic Eng'g, Ltd. v. Basic Envirotech, Inc., 53 F. Supp. 2d 1007 (N.D. Ill. 1999). “” 740 ILCS 160/3(a). Further, “[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
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