Mich. Comp. Laws » Michigan Compiled Laws / Chapter 566 / Act 434 of 1998
Michigan Compiled Laws

Mich. Comp. Laws § 566.32 (2026)

Insolvency.

✓ current as of July 2026
Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

UNIFORM VOIDABLE TRANSACTIONS ACT


Act 434 of 1998


566.32 Insolvency.

Sec. 2.

    (1) 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.

    (2) 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.

    (3) As used in this section:

    (a) Assets 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.

    (b) Debts 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.

History: 1998, Act 434, Imd. Eff. Dec. 30, 1998 ;-- Am. 2016, Act 552, Eff. Apr. 10, 2017

Notes of Decisions
Cited in 17 cases (7 in the last 5 years), 2011–2025 · leading case: 51382 Gratiot Avenue Holdings, LLC v. Chesterfield Dev. Co., 835 F. Supp. 2d 384 (E.D. Mich. 2011).
Sort: Relevance Newest Treatment
51382 Gratiot Avenue Holdings, LLC v. Chesterfield Dev. Co., 835 F. Supp. 2d 384 (E.D. Mich. 2011). · cites it 7× “” Mich. Comp. Laws § 566.32 (1); cf. 11 U.S.”
Goldman v. Kattouah (In Re Kattouah), 452 B.R. 604 (E.D. Mich. 2011). · cites it 2× “§ 548 (a)(l)(B)(ii)(I); Mich. Comp. Laws §§ 566.32 (1), 566.34(2)(i).”
Richardson v. Checker Acquisition Corp. (In re Checker Motors Corp.), 495 B.R. 355 (Bankr. W.D. Mich. 2013). · cites it 2× “Mich. Comp. Laws § 566.35 . . 11 U.S.C. § 101 (32)(A) and Mich.”
Rpad LLC v. Salvatore Dinoto (Mich. Ct. App. 2018). · cites it 7× “In relevant part, MCL 566.32 states: (1) 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.”
Can IV Packard Square LLC v. Craig Schubiner (Mich. Ct. App. 2024). · cites it 4× “*** (3) Except as provided in subsection (4) and subject to [MCL566.32] a creditor that makes a claim for relief under subsection (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.”
Gold v. Wall, Sr. (Bankr. E.D. Mich. 2024). · cites it 4× “Insolvency is defined in Mich. Comp. Laws Ann. § 566.32 (1): “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.”
Stuart A. Gold, Tr. v. Dorothy E. McLemore Trust (Bankr. E.D. Mich. 2025). · cites it 4× “7 Insolvency is defined in Mich. Comp. Laws Ann. § 566.32 (1): “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.”
20241218_C369545_41_369545.Opn.Pdf (Mich. Ct. App. 2024). · cites it 3× “” MCL 566.32 addresses “insolvency” and provides: -12- (1) 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.”
Dombrowski v. United States (E.D. Mich. 2020). · cites it 2× “Mich. Comp. Laws § 566.32 (1) (“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.”
Gold v. Shelton (Bankr. E.D. Mich. 2021). · cites it 2× “§ 101 (32); see also MICHIGAN COMPILED LAWS § 566.32(1) (“[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”); MICHIGAN COMPILED LAWS § 566.”
Gold v. Chaaban (Bankr. E.D. Mich. 2020). · cites it 2× “LAWS § 566.32(1). The Trustee does not argue insolvency under this subsection.”
Richmond Main LLC v. Frenchtown Square P'ship (E.D. Mich. 2025). · cites it 2× “See generally, Mich. Comp. Laws §566.32 . The proposed amendment also includes broad and sweeping claims of alleged duties (e.”
Show all 17 citing cases →
— Mich. Comp. Laws § 566.32(1) — 6 cases
Rpad LLC v. Salvatore Dinoto (Mich. Ct. App. 2018). “In relevant part, MCL 566.32 states: (1) 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.”
Coldwell Banker Residential Real Est v. Silver Creek Partners II (Mich. Ct. App. 2015).
Can IV Packard Square LLC v. Craig Schubiner (Mich. Ct. App. 2024). “*** (3) Except as provided in subsection (4) and subject to [MCL566.32] a creditor that makes a claim for relief under subsection (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.”
Gold v. Shelton (Bankr. E.D. Mich. 2021). “§ 101 (32); see also MICHIGAN COMPILED LAWS § 566.32(1) (“[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”); MICHIGAN COMPILED LAWS § 566.”
Gold v. Chaaban (Bankr. E.D. Mich. 2020). “LAWS § 566.32(1). The Trustee does not argue insolvency under this subsection.”
— Mich. Comp. Laws § 566.32(2) — 5 cases
51382 Gratiot Avenue Holdings, LLC v. Chesterfield Dev. Co., 835 F. Supp. 2d 384 (E.D. Mich. 2011). “” Mich. Comp. Laws § 566.32 (1); cf. 11 U.S.”
Rpad LLC v. Salvatore Dinoto (Mich. Ct. App. 2018). “In relevant part, MCL 566.32 states: (1) 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.”
Gold v. Shelton (Bankr. E.D. Mich. 2021). “§ 101 (32); see also MICHIGAN COMPILED LAWS § 566.32(1) (“[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”); MICHIGAN COMPILED LAWS § 566.”
Gold v. Chaaban (Bankr. E.D. Mich. 2020). “LAWS § 566.32(1). The Trustee does not argue insolvency under this subsection.”
20241218_C369545_41_369545.Opn.Pdf (Mich. Ct. App. 2024). “” MCL 566.32 addresses “insolvency” and provides: -12- (1) 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.”
— Mich. Comp. Laws § 566.32(3)(a) — 1 case
Can IV Packard Square LLC v. Craig Schubiner (Mich. Ct. App. 2024). “*** (3) Except as provided in subsection (4) and subject to [MCL566.32] a creditor that makes a claim for relief under subsection (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.”
— Mich. Comp. Laws § 566.32(3)(b) — 1 case
Can IV Packard Square LLC v. Craig Schubiner (Mich. Ct. App. 2024). “*** (3) Except as provided in subsection (4) and subject to [MCL566.32] a creditor that makes a claim for relief under subsection (1) or (2) has the burden of proving the elements of the claim for relief by a preponderance of the evidence.”
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.