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Maine Revised Statutes

Me. Rev. Stat. tit. 14, § 3573 (2026)

Insolvency

✓ current as of May 2026

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1. Debts greater than assets. 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.

[PL 1985, c. 641, §3 (NEW).]

2. Presumption of insolvency. A debtor who is generally not paying his debts as they become due is presumed to be insolvent.

[PL 1985, c. 641, §3 (NEW).]

3. Partnership insolvency. A partnership is insolvent under subsection 1 if the sum of the partnership's debts is greater than the aggregate of all of the partnership's assets at a fair valuation, and the sum of the excess of the value of each general partner's nonpartnership assets over the partner's nonpartnership debts.

[PL 1985, c. 641, §3 (NEW).]

4. Assets; exclusion. 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.

[PL 1985, c. 641, §3 (NEW).]

5. Debts. 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.

[PL 1985, c. 641, §3 (NEW).]

SECTION HISTORY

PL 1985, c. 641, §3 (NEW).

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 2002–2026 · leading case: Pettegrow (Bankr. D. Me. 2026).

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Pettegrow (Bankr. D. Me. 2026). · cites it 6× “Both L207 and the Pettegrows point to the Commissioners’ Comment to the Uniform Fraudulent Transfer Act as support for their varying interpretations of 14 M.R.S. § 3573. That Comment attributes the presumption created in the second paragraph to the “difficulties typically…”

O'Shea v. O'Shea (Me. Super. Ct 2020). · cites it 2× “Consequently, she must prove that the Rita was insolvent-either before the transfer or as a result of it. See 14 M.R.S. § 3573( 1) ("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.”

Off. Comm. of Unsecured Creditors v. Calpers Corp. Partners LLC (D. Me. 2020). “” 14 M.R.S.A. § 3573(2). However, the First Amended Complaint asserts that the Distributions should be avoided, not pursuant § 3573(2), but pursuant to 14 M.”

Olson v. Gleichman (Me. Super. Ct 2020). “14 M.R.S.A. § 3573(2) presumes a debtor insolvent when they are not paying their debts as they become due.”

Linder v. Barry (Me. Super. Ct 2002). “Likewise, as Defendant Barry is insolvent within definition of 14 M.R.S.A. § 3573 (1) and has removed or concealed assets, the Court may presume that Defendant Barry’s intent was to hinder, delay or defraud Plaintiff as a creditor.”

— Me. Rev. Stat. tit. 14, § 3573(2) — 4 cases

Pettegrow (Bankr. D. Me. 2026). “Both L207 and the Pettegrows point to the Commissioners’ Comment to the Uniform Fraudulent Transfer Act as support for their varying interpretations of 14 M.R.S. § 3573. That Comment attributes the presumption created in the second paragraph to the “difficulties typically…”

Off. Comm. of Unsecured Creditors v. Calpers Corp. Partners LLC (D. Me. 2020). “” 14 M.R.S.A. § 3573(2). However, the First Amended Complaint asserts that the Distributions should be avoided, not pursuant § 3573(2), but pursuant to 14 M.”

Olson v. Gleichman (Me. Super. Ct 2020). “14 M.R.S.A. § 3573(2) presumes a debtor insolvent when they are not paying their debts as they become due.”

O'Shea v. O'Shea (Me. Super. Ct 2020). “Consequently, she must prove that the Rita was insolvent-either before the transfer or as a result of it. See 14 M.R.S. § 3573( 1) ("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.”

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