Rhode Island General Laws

R.I. Gen. Laws § 6-16-2 (2026)

Insolvency

✓ current as of July 2026
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(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. The presumption imposes on the party against whom the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence.

(c) 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 have been transferred in a manner making the transfer voidable under this chapter.

(d) Debts under this section do not include obligations to the extent they are secured by a valid lien on property of the debtor not included as an asset.

Notes of Decisions
Cited in 2 cases, 1959–1997 · leading case: Nisenzon v. Sadowski, 689 A.2d 1037 (R.I. 1997).
Nisenzon v. Sadowski, 689 A.2d 1037 (R.I. 1997). · cites it 3× “" Section 6-16-2(a), (b). 10 . " 'Claim' means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
Cliftex Clothing Co. v. Di Santo, 148 A.2d 273 (R.I. 1959). · cites it 2× “The plaintiff offered no evidence that it had foregone resort to that remedy as a result of a promise by defendant to pay such indebtedness.”
— R.I. Gen. Laws § 6-16-2(a) — 1 case
Nisenzon v. Sadowski, 689 A.2d 1037 (R.I. 1997). “" Section 6-16-2(a), (b). 10 . " 'Claim' means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
— R.I. Gen. Laws § 6-16-2(b) — 1 case
Nisenzon v. Sadowski, 689 A.2d 1037 (R.I. 1997). “" Section 6-16-2(a), (b). 10 . " 'Claim' means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.”
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