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Pennsylvania Consolidated Statutes

12 Pa. Cons. Stat. § 5102 (2026)

 Insolvency.

✓ current as of May 2026
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§ 5102.  Insolvency.

(a)  General rule.--A debtor is insolvent if, at fair valuation, the sum of the debtor's debts is greater than the sum of the debtor's assets.

(b)  Presumption of insolvency.--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)  Exclusion of certain assets.--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 chapter.

(d)  Exclusion of certain 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.

(e)  Exclusion of certain debts.--((e) relettered to (d)).

(Dec. 22, 2017, P.L.1249, No.78, eff. 60 days)

 

2017 Amendment.  See section 7 of Act 78 in the appendix to this title for special provisions relating to applicability.

Cross References.  Section 5102 is referred to in section 5105 of this title.

Notes of Decisions
Cited in 12 cases (4 in the last 5 years), 1998–2025 · leading case: Titus v. Shearer, 498 B.R. 508 (W.D. Pa. 2013).
Sort: Relevance Newest Treatment
Titus v. Shearer, 498 B.R. 508 (W.D. Pa. 2013). · cites it 3× “Following committee comment 6 to 12 Pa. Cons.Stat. § 5102 10 and applicable case law, the bankruptcy court held that the PUFTA requires the plaintiff to prove that the transferred funds were not spent on necessities as part of the plaintiffs prima facie case.”
Adelphia Recovery Trust v. FPL Grp., Inc. (In re Adelphia Commc'ns Corp.), 512 B.R. 447 (Bankr. S.D.N.Y. 2014). “12 Pa. Cons. Stat. § 5102 ; In re Fidelity Bond and Mortg.”
Knoll, C. v. Uku, E., 154 A.3d 329 (Pa. Super. Ct. 2017). “12 Pa.C.S. § 5102. We conclude that the record evidence supported the trial court’s finding that Uku became insolvent within the meaning of § 5102 after he deeded his three individually owned properties from his name and into those of himself and Fant.”
David Cutler Indus., Ltd. v. Bank of Am. (In re David Cutler Indus., Ltd.), 502 B.R. 58 (Bankr. E.D. Pa. 2013). “12 Pa.C.S. § 5102(a). 23 This definition is derived from the Bankruptcy Code 11 U.”
Liebersohn v. Zisholtz (In Re Martin's Aquarium, Inc.), 225 B.R. 868 (Bankr. E.D. Pa. 1998). “(b) Presumption of insolvency.—A debtor who is generally not paying the debtor’s debts as they become due is presumed to be insolvent.”
Gardner v. Tyson (In Re Gardner), 218 B.R. 338 (Bankr. E.D. Pa. 1998). “” 12 Pa.C.S. § 5102(a). The transfer at issue eliminated the Home from the Debtor’s inventory of assets.”
Feldman v. Lynch, Jr. (Bankr. E.D. Pa. 2025). · cites it 4× “See Uniform Law Comment 2 to 12 Pa. C.S. §5102; In re Incare, 2018 WL 2121799 at *9.”
Brosky, W. v. MJC Indus., Inc. (Pa. Super. Ct. 2017). “" 12 PaC.S. §5102(a). Further, adebtorispresumed to · be insolvent where the debtor ''is generally not paying the debtor's debts as they become due .”
Wilmington Trust, Nat'l Ass'n, as Tr. of the $29,615,000 Philadelphia Auth. for Indus. Dev. Senior Hous. Revenue Bonds (the Pavilion) v. Pavilion Apts. Penn LLC (E.D. Pa. 2023). “¶¶ 31, 64), which triggers a presumption of insolvency under 12 Pa.C.S. § 5102(a). Wilmington Trust further alleges that the management fees paid to Aloft and the laundry vending machine cash collected by Aron Puretz were transfers to insiders and that Pavilion was insolvent…”
Mortimer, R., Aplt. v. McCool, M. (Pa. 2021). “12 Pa.C.S. § 5102 (“A debtor is insolvent if, at fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets.”
Mortimer, R., Aplt. v. 340 Assocs., LLC (Pa. 2021). “12 Pa.C.S. § 5102 (“A debtor is insolvent if, at fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets.”
Caton v. JIK Enter. Inc., 16 Pa. D. & C.5th 410 (2010). “12 Pa.C.S. §5102(a). . Voest-Alpine Trading USA v.”
— 12 Pa. Cons. Stat. § 5102(a) — 7 cases
David Cutler Indus., Ltd. v. Bank of Am. (In re David Cutler Indus., Ltd.), 502 B.R. 58 (Bankr. E.D. Pa. 2013). “12 Pa.C.S. § 5102(a). 23 This definition is derived from the Bankruptcy Code 11 U.”
Liebersohn v. Zisholtz (In Re Martin's Aquarium, Inc.), 225 B.R. 868 (Bankr. E.D. Pa. 1998). “(b) Presumption of insolvency.—A debtor who is generally not paying the debtor’s debts as they become due is presumed to be insolvent.”
Gardner v. Tyson (In Re Gardner), 218 B.R. 338 (Bankr. E.D. Pa. 1998). “” 12 Pa.C.S. § 5102(a). The transfer at issue eliminated the Home from the Debtor’s inventory of assets.”
Brosky, W. v. MJC Indus., Inc. (Pa. Super. Ct. 2017). “" 12 PaC.S. §5102(a). Further, adebtorispresumed to · be insolvent where the debtor ''is generally not paying the debtor's debts as they become due .”
Wilmington Trust, Nat'l Ass'n, as Tr. of the $29,615,000 Philadelphia Auth. for Indus. Dev. Senior Hous. Revenue Bonds (the Pavilion) v. Pavilion Apts. Penn LLC (E.D. Pa. 2023). “¶¶ 31, 64), which triggers a presumption of insolvency under 12 Pa.C.S. § 5102(a). Wilmington Trust further alleges that the management fees paid to Aloft and the laundry vending machine cash collected by Aron Puretz were transfers to insiders and that Pavilion was insolvent…”
— 12 Pa. Cons. Stat. § 5102(b) — 1 case
Feldman v. Lynch, Jr. (Bankr. E.D. Pa. 2025). “See Uniform Law Comment 2 to 12 Pa. C.S. §5102; In re Incare, 2018 WL 2121799 at *9.”
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