[Notice: Statutes and regulations on this site are not regularly updated and should not be relied upon without further verification]
As used in this chapter the following definitions are
(a) “Asset” means property of a debtor, but the term does not
include, the following:
(1) Property to the extent it is encumbered by a valid lien.
(2) Property to the extent it is generally exempt under
(3) An interest in property held in tenancy by the entireties to
the extent it is not subject to process by a creditor holding a claim
against only one tenant.
(b) “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,
(c) “Creditor” means a person who has a claim, and includes an
assignee of a general assignment for the benefit of creditors, as
defined in Section 493.010 of the Code of Civil Procedure, of a
(d) “Debt” means liability on a claim.
(e) “Debtor” means a person who is liable on a claim.
(f) “Lien” means a charge against or an interest in property to
secure payment of a debt or performance of an obligation, and
includes a security interest created by agreement, a judicial lien
obtained by legal or equitable process or proceedings, a common-law
lien, or a statutory lien.
(g) “Person” means an individual, partnership, corporation,
limited liability company, association, organization, government or
governmental subdivision or agency, business trust, estate, trust, or
any other legal or commercial entity.
(h) “Property” means anything that may be the subject of
(i) “Transfer” means every mode, direct or indirect, absolute or
conditional, voluntary or involuntary, of disposing of or parting
with an asset or an interest in an asset, and includes payment of
money, release, lease, and creation of a lien or other encumbrance.
(j) “Valid lien” means a lien that is effective against the holder
of a judicial lien subsequently obtained by legal or equitable
process or proceedings.
(a) A debtor is insolvent if, at fair valuations, the sum
of the debtor’s debts is greater than all of the debtor’s assets.
(b) A debtor which is a partnership is insolvent if, at fair
valuations, the sum of the partnership’s debts is greater than the
aggregate of all of the partnership’s assets and the sum of the
excess of the value of each general partner’s nonpartnership assets
over the partner’s nonpartnership debts.
(c) A debtor who is generally not paying his or her debts as they
become due is presumed to be insolvent.
(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 chapter.
(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.
3439.03. 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