(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 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.
(c) Repealed by Session Laws 2015-23, s. 1, effective October 1, 2015, and applicable to a transfer made or obligation incurred on or after that date.
(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 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. (1997-291, s. 2; 2015-23, s. 1.)
§ 39-23.3. Value.
(a) Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor's business to furnish support to the debtor or another person.
(b) For the purposes of G.S. 39-23.4(a)(2) and G.S. 39-23.5, a person gives a reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or execution of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust, or security agreement.
(c) A transfer is made for present value if the exchange between the debtor and the transferee is intended by them to be contemporaneous and is in fact substantially contemporaneous. (1997-291, s. 2; 1998-217, s. 6.)
Notes of Decisions
Cited in
12
cases (
10 in the last 5 years), 2011–2026 · leading case:
Starnes v. Comm'r, 2011 T.C. Memo. 63 (Tax Ct. 2011).
Starnes v. Comm'r, 2011 T.C. Memo. 63 (Tax Ct. 2011).
· cites it 2× “"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.”
Poulos v. Poulos, 2016 NCBC 71 (N.C. Bus. Ct. 2016).
· cites it 2× “” G.S. § 39-23.2. Dep. pp. 60–61, 64.) Plaintiff has not presented any evidence that at any time relevant to this action Dr.”
Bledsoe III, Tr. v. Flamingo Props., LLC (Bankr. E.D.N.C. 2021).
· cites it 4× “§ 3302 , and N.C. Gen. Stat. § 39-23.2 . Immediately after the Transfers, the assets of the Debtor, corresponding values (and lien(s), if applicable), and available claims of exemption, in late May 2015 were, upon information and belief: (a) real property located at 651 Fairlie…”
Boykin v. United States (W.D.N.C. 2023).
· cites it 3× “” N.C. Gen. Stat. § 39-23.2 (b). In 2015, Balvich could not pay his debts as they came due.”
Parrott (Bankr. M.D.N.C. 2026).
· cites it 3× “" N.C. Gen. Stat. § 39-23.2 (a). In addition, a rebuttable presumption of insolvency is given for 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.”
Cent. Carolina Surgical Eye Assocs., P.A. v. Matthews, 2022 NCBC 14 (N.C. Bus. Ct. 2022).
· cites it 3× “, N.C.G.S. § 39-23.2(a)–(b) (providing that “[a] debtor is solvent if, at a fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets” and “[a] debtor that is generally not paying the debtor’s debts as they become due other than as a result of…”
— N.C. Gen. Stat. § 39-23.2(a) — 5 cases
Cent. Carolina Surgical Eye Assocs., P.A. v. Matthews, 2022 NCBC 14 (N.C. Bus. Ct. 2022).
“, N.C.G.S. § 39-23.2(a)–(b) (providing that “[a] debtor is solvent if, at a fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets” and “[a] debtor that is generally not paying the debtor’s debts as they become due other than as a result of…”
— N.C. Gen. Stat. § 39-23.2(b) — 1 case
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.