New Jersey Statutes
N.J. Stat. § 25:2-23 (2026)
Insolvency
✓ current as of May 2026
25:2-23. Insolvency.
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 who 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. This 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. (Deleted by amendment, P.L.2021, c.92.)
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 article.
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.
Notes of Decisions
Cited in 11
cases (3 in the last 5 years), 2000–2024 · leading case: Sec. & Exch. Comm'n v. Antar, 120 F. Supp. 2d 431 (D.N.J. 2000).
Sec. & Exch. Comm'n v. Antar, 120 F. Supp. 2d 431 (D.N.J. 2000). “” N.J.S.A. § 25:2-23(a). A “debt” is defined as “liability on a claim.”
ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008). “” N.J. Stat. § 25:2-23(b); 6 Del. C. § 1302(a).”
United States v. Patras, 909 F. Supp. 2d 400 (D.N.J. 2012). “” N.J.S.A. § 25:2-23(a)(b). As noted above, Dr.”
Advanced Telecomm. Network, Inc. v. Allen (In Re Advanced Telecomm. Network, Inc.), 321 B.R. 308 (Bankr. M.D. Fla. 2005). “” N.J. Stat. Ann. § 25:2-23 (a). By way of comparison, the New Jersey definition is functionally similar to the definition of insolvency contained in Section 101(32) of the Bankruptcy Code that similarly requires assets to be valued at “fair value” for “balance sheet” insolvency…”
5 Perry Street, LLC Vs. Southwind Props., LLC (c-21-15, Cape May Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2017). “25:2-22, for consideration that was far less than the Property's value, rendered it insolvent as its debts exceeded its assets, see N.J.S.A. 25:2-23(a), and left it with assets that were unreasonably small for its lodging business.”
Majek Investments LLC v. Conventus, LLC (N.J. Super. Ct. App. Div. 2023). “" N.J.S.A. 25:2-23(a). Further, "[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Gurevitch v. Curtis (D.N.J. 2024). “See N.J.S.A. 25:2-23(a). For example, John Lee testified that defendant has another personal bank account in addition to the Wells Fargo account she created for him.”
Motorworld, Inc. v. William Benkendorf077009) (N.J. 2017). “” N.J.S.A. 25:2-23(a); Advanced Telecomm. Network, supra, 490 F.”
Main Land Sussex Co., LLC Vs. Priti Shetty (l-0480-14, Morris Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2019). “A. 25:2-23(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.”
LuMee LLC v. Fernandez (Bankr. D. Utah 2023). “Further, the 2015 tax return should not be used to determine solvency due to the lack of evidence to show a starting date for transfers. Demonstrative C refers to the whole year, but the four-year reach back starts in mid-June 2015.”
Lichtenstein v. Aspect Comput. Corp. (In Re Comput. Personalities Sys., Inc.), 362 B.R. 669 (Bankr. E.D. Pa. 2006). “A debtor is insolvent if the sum of its debts is greater that all of its assets, at a fair valuation, excluding the property fraudulently transferred with intent to defraud creditors.”
N.J. Stat. § 25:2-23(a): 6 cases
Sec. & Exch. Comm'n v. Antar, 120 F. Supp. 2d 431 (D.N.J. 2000). “” N.J.S.A. § 25:2-23(a). A “debt” is defined as “liability on a claim.”
Motorworld, Inc. v. William Benkendorf077009) (N.J. 2017). “” N.J.S.A. 25:2-23(a); Advanced Telecomm. Network, supra, 490 F.”
5 Perry Street, LLC Vs. Southwind Props., LLC (c-21-15, Cape May Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2017). “25:2-22, for consideration that was far less than the Property's value, rendered it insolvent as its debts exceeded its assets, see N.J.S.A. 25:2-23(a), and left it with assets that were unreasonably small for its lodging business.”
Main Land Sussex Co., LLC Vs. Priti Shetty (l-0480-14, Morris Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2019). “A. 25:2-23(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.”
Majek Investments LLC v. Conventus, LLC (N.J. Super. Ct. App. Div. 2023). “" N.J.S.A. 25:2-23(a). Further, "[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
N.J. Stat. § 25:2-23(a)(b): 1 case
United States v. Patras, 909 F. Supp. 2d 400 (D.N.J. 2012). “” N.J.S.A. § 25:2-23(a)(b). As noted above, Dr.”
N.J. Stat. § 25:2-23(b): 4 cases
ASARCO LLC v. Americas Mining Corp., 396 B.R. 278 (S.D. Tex. 2008). “” N.J. Stat. § 25:2-23(b); 6 Del. C. § 1302(a).”
5 Perry Street, LLC Vs. Southwind Props., LLC (c-21-15, Cape May Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2017). “25:2-22, for consideration that was far less than the Property's value, rendered it insolvent as its debts exceeded its assets, see N.J.S.A. 25:2-23(a), and left it with assets that were unreasonably small for its lodging business.”
Majek Investments LLC v. Conventus, LLC (N.J. Super. Ct. App. Div. 2023). “" N.J.S.A. 25:2-23(a). Further, "[a] debtor who is generally not paying his debts as they become due is presumed to be insolvent.”
Gurevitch v. Curtis (D.N.J. 2024). “See N.J.S.A. 25:2-23(a). For example, John Lee testified that defendant has another personal bank account in addition to the Wells Fargo account she created for him.”
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