11 U.S.C. § 101

Section 101(8) treats debt incurred to purchase a home as consumer debt.

Turner v. Johnson (In Re Johnson) · filed 2005-01-10(8)

Thus, secured debt incurred to purchase a home, i.e., a residential mortgage, is consumer debt.

Section 101(8) excludes a debt arising from profit-motivated fraud or unintended negligence from the definition of consumer debt incurred for a household purpose.

Davis v. Melcher (In Re Melcher) · filed 2005-03-10(8)

The court concludes that the alleged debt is not a consumer debt. The debt must be viewed from the perspective of the plaintiffs theory of a fraud debt which entailed a profit motive because the defendants engaged in fraud to perform construction on the cheap. That removes the debt from the category of debts incurred for household purposes. Moreover, the real cause of the plaintiffs injuries was the contractor’s negligence, and like an automobile accident or taxes, such a debt is not incurred for a purpose. It may have been incurred incident to renovating a house (a household purpose) but negligence by definition is unintended and thus cannot be a debt incurred for a household purpose.

Section 101 defines consumer debt as debt incurred primarily for a personal, family, or household purpose; debts arising from patent litigation are business debts.

In Re Sekendur · filed 2005-12-15(8)

Consumer debt is defined in Section 101 to mean a “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101. ... The majority of Debtor’s debts arose from litigation pertaining to his patents and are of a business rather than personal nature.

Section 101(8) defines consumer debt as debt an individual incurs primarily for a personal, family, or household purpose.

In Re Miller · filed 2005-12-19(8)

The Bankruptcy Code defines consumer debt as debt “incurred by an individual, primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... The Court therefore finds that the Trustee has met his burden in proving that the Debtor’s debts are primarily consumer claims for purposes of this motion.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In Re Krause · filed 2006-07-28(8)

The term “consumer debt” is defined as “debt incurred by an individual primarily for a personal, family, or household purpose.” § 101(8). All of the Debtors’ debt appears to be “consumer debt.”

A debt securing a debtor’s principal residence qualifies as a consumer debt under § 101(8).

King v. Wells Fargo Bank, N.A. (In Re King) · filed 2007-03-20(8)

Section 101(8), in turn, defines a consumer debt as a “debt incurred by an individual primarily for a personal, family, or household purpose.” A debt securing a debtor’s principal residence qualifies as a consumer debt.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family or household purpose.

In Re Benedetti · filed 2007-07-13(8)

Consumer debts are those "incurred by an individual primarily for a personal, family or household purpose.” 11 U.S.C. section 101(8). The majority of Debtor’s indebtedness is credit card debt, and is therefore consumer in nature.

Section 101(8) classifies debt by its primary purpose; debt incurred predominantly for business purposes is not consumer debt even if some funds were used personally.

Swartz v. Strausbaugh (In Re Strausbaugh) · filed 2007-09-18(8)

Under § 101(8) of the Bankruptcy Code, a “consumer debt” is one that is incurred primarily for personal, family, or household purposes. 11 U.S.C. § 101(8). Here, even assuming for the sake of argument that approximately $21,300 of the total indebtedness was consumer debt, the predominant portion of the debt was incurred for a business purpose and, thus, must be classified as business rather than consumer debt.

Section 101(8) treats a mortgage debt incurred as a personal favor without a profit motive as consumer debt.

In Re Davis · filed 2007-11-02(8)

Therefore, the mortgage debt does not qualify as a business debt because the Debtor had no profit motive and was not regularly employed in fixing up homes and selling them for a profit. For these reasons, the Trustee has demonstrated, by a preponderance of the evidence, that the debts at issue in this case are primarily consumer debts.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

FIA Card Services, N.A. v. George (In Re George) · filed 2007-12-19(8)

The charges constitute consumer debts pursuant to 11 U.S.C. Section 101(8).

Section 101(8) defines a consumer debt as one incurred by an individual primarily for personal, family, or household purposes.

KC Coring & Cutting Construction, Inc. v. McArthur (In Re McArthur) · filed 2008-07-02(8)

A consumer debt is incurred by an individual primarily for personal, family, or household purposes.

A mortgage loan incurred to purchase a personal residence is a consumer debt under § 101(8).

In Re Lemma · filed 2008-09-09(8)

This Court concludes that a note secured by a mortgage lien on a personal residence is a “consumer debt.”

Section 101(8) includes debt incurred primarily for personal, family, or household purposes in its definition of consumer debt, even when the debt is secured by real property.

In Re Hlavin · filed 2008-09-30(8)

Rather, under the plain language of § 101(8), a debt incurred by an individual primarily for a Consumer Purpose is a consumer debt regardless of whether it is secured or unsecured.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In Re Hart · filed 2009-03-10(8)

"The term 'consumer debt’ means debt incurred by an individual primarily for a personal, family, or household purpose." 11 U.S.C. § 101(8). The Loans are consumer debts.

Section 101(8) supplies the definition of consumer debt used to determine whether Section 707(b) applies.

In Re Ricci · filed 2009-09-30(8)

The Debtors’ debts are primarily consumer debts. 11 U.S.C. § 101(8). They are subject to the provisions of Sections 707(b)(1) and (b)(3).

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; debts incurred for business purposes do not qualify.

1720 Entertainment LLC v. Palmer (In Re Palmer) · filed 2009-11-24(8)

The Bankruptcy Code defines consumer debt as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... Most all of the debts, including the over $2.7 million owed to 1720, and the $90,000 SunTrust loan are business debts, not consumer debts.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In Re Baird · filed 2010-01-20(8)

BCH did not establish the indebtedness was incurred by the Debtors primarily for a personal, family, or household purpose. BCH’s debt does not constitute a consumer debt pursuant to 11 U.S.C. Section 101(8).

Section 101(8) classifies a home loan as consumer debt when it is secured by the debtor’s home and incurred for personal, family or household purposes, even if the debtor did not sign the loan documents.

Lapke v. Mutual of Omaha Bank · filed 2010-05-10(8)

In sum, we find that where a debtor’s home serves as collateral for a loan and the loan is for personal, family or household purposes, the amount owed to the lender is classified as consumer debt.

Section 101(8) excludes business debts from the definition of consumer debt.

Kaplus v. Lorenzo in (In Re Lorenzo) · filed 2010-07-22(8)

The debts owed by Debt- or to Plaintiffs constitute business debts and not consumer debts, as defined by 11 U.S.C. Section 101(8).

Section 101(8) defines consumer debt as debt incurred primarily for personal, family, or household purposes; a mortgage on the debtor’s home qualifies.

In re St. Jean · filed 2011-01-24(8)

A consumer debt is a “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... The home mortgage is consumer debt for purposes of § 707(b).

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In Re Adolph · filed 2011-01-28(8)

Adolph’s debts are not “primarily consumer debts” because he has no consumer debts. All of his debts are business debts.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; interest on a business judgment counts as non-consumer debt.

In Re Piazza · filed 2011-06-17(8)

Consumer debts are “debt[s] incurred by an individual primarily for a personal, family or household purpose.” ... Consequently, the business debt owed to the Creditor rises to at least $209,824.00, or 55% of total debt (even when the debt to American Honda Finance is included in the calculus as consumer debt).

Section 101(8) defines consumer debt by its purpose, so whether a student loan is consumer debt depends on the purpose for which it was incurred.

In Re Rucker · filed 2011-06-14(8)

The Court concludes it cannot apply a per se rule to characterize student loan debts as consumer debt or noncon-sumer debt under § 707(b). Instead, the Court must inquire into the purpose of the debt. Such an inquiry is consistent with the language of § 101(8), which defines consumer debt according to its purpose.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose; a business loan does not qualify.

Stelmokas v. Kodzius · filed 2012-02-02(8)

The bankruptcy code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... Thus the business character of the loan was undisputed, and the bankruptcy judge erred by concluding that Kodzius met his burden to demonstrate the factual basis for attorney’s fees under § 523(d).

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; the debt arising from this statutory tort litigation did not qualify.

Reyes v. Farhangkhah (In re Farhangkhah) · filed 2012-03-21(8)

Section 101(8) of the Bankruptcy Code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). The debt incurred by Debtor to Plaintiff is not a consumer debt, but rather a debt arising as a result of litigation of a statutory tort claim by Plaintiff.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; debt incurred with a profit motive is nonconsumer debt.

In re Hardigan · filed 2013-03-29(8)

The Code defines "consumer debt” as "debt incurred by an individual primarily for a personal, family or household purpose.” 11 U.S.C. § 101(8). ... The guaranty debt to STB was incurred by Debtor’s medical practice, and thus, it is clear that this debt was incurred with a profit motive and is non-consumer debt.

Section 101(8) defines consumer debt as debt incurred primarily for personal, family, or household purposes; a transaction incurred with a profit motive is not consumer debt.

Jennings v. Bodrick (In re Bodrick) · filed 2014-04-18(8)

A “consumer debt” is defined as a “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... A transaction is not a consumer debt when it is incurred with a profit motive.

Section 101(8) includes unsecured housing-related loans within the definition of consumer debt.

Swenby v. Swenby (In re Swenby) · filed 2015-04-23(8)

Although the transfers underlying the state court judgments may have been housing-related, they are unsecured and fall well within the definition of consumer debts.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; medical benefits obtained without a business motive can create consumer debt.

Trustees of the Will County Carpenters, Local 174, Health & Welfare Fund v. Cooney · filed 2015-05-29(8)

The Bankruptcy Code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” ... Swartz is distinguishable, however, because the Bankruptcy Court found no evidence that Cooney obtained benefits from the Fund to improve Avenue’s bottom line. Accordingly, the Court affirms the Bankruptcy Court’s finding that Cooney’s debt was a consumer debt.

Section 101(8) classifies a debt incurred for multiple purposes as consumer or non-consumer debt according to its primary purpose.

In re Johnson · filed 2016-02-26(8)

The use of the word “primarily” in § 101(8) means that if a debt was incurred for more than one reason, it is the primary purpose for which it was incurred that determines whether the entire debt is a consumer or a non-consumer debt.

Student loans are consumer debts under § 101(8) when the debtor fails to show they were incurred with a profit motive.

In re Ferreira · filed 2016-02-29(8)

The debtor has failed to carry her burden of proving that she incurred her student loans with a profit motive. That permits the court to treat the entirety of the debtor’s student loan debt as consumer debt.

Section 101(8) includes student loans used for personal professional advancement within the definition of consumer debt.

In re Robinson · filed 2016-10-26(8)

The Debtor utilized the proceeds from her education loans to satisfy quintessential personal interests and those obligations fall squarely within the definition of consumer debts under § 101(8).

Section 101(8) classifies debt by the primary purpose for which it was incurred; student loans incurred with a profit motive can be nonconsumer debt.

Palmer v. Laying · filed 2016-11-15(8)

That is not how the § 101(8) analysis works, however, as only the purpose for incurring the debt should cast it in a particular shade.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; debt from a transaction pursued for profit is a business debt.

Korrub v. Cohn (In re Cohn) · filed 2016-11-15(8)

The Bankruptcy Code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). See Cooney, 532 B.R. at 300. The parties may not have agreed on much, but they agreed that they entered this transaction with the goal- of making a profit. Any debt Cohn incurred to Korrub was a business debt, not a consumer one, and Cohn would have no basis for requesting fees under § 523(d).

Section 101(8) can include a mortgage on a primary residence as consumer debt when the property has no profit or business use.

In re Whitlock-Young · filed 2017-08-10(8)

As to the first point of contention, the Bankruptcy Code defines a consumer debt as a, “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... There is no indication that the Debtor or the Co-Debtor use the Property for any profit motive or business purpose. As such, the debt underlying the mortgage on the Debtor’s residence is a consumer debt.

Section 101(8) defines consumer debt by the debtor’s primary purpose in incurring it; an employer’s housing loan can be non-consumer debt when it is part of compensation intended to further the debtor’s career.

Aspen Skiing Co. v. Cherrett (In Re Cherrett) · filed 2017-10-16(8)

“Consumer debt” is defined as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... On these facts, the bankruptcy court did not clearly err when it found the Housing Loan and the annual bonus were part of Cherrett’s negotiated compensation package, undertaken for a business purpose connected to furthering his career, rather than a personal, family, or household expense.

A profit motive may help determine whether a debt is consumer debt under § 101(8), but it is not the only factor.

In re Grillot · filed 2017-12-21(8)

While the presence of a “profit motive” may be a distinguishing factor as the Stewart court found, nothing in Stewart or § 101(8) makes it the only factor.

Section 101(8) treats damages compensating for a debtor’s personal use of funds as consumer debt, but excludes punitive damages imposed to punish and deter.

In re Durant · filed 2018-06-19(8)

The punishment and deterrence objectives of a punitive damages award are often necessary and very appropriate under applicable law, but differ in significant ways from a "personal, family, or household purpose." ... Based on the entirety of the record in this matter, the Court finds that the Non-Economic Damages are compensation for the Debtor's use of the Inheritance Funds for a personal, family, or household purpose and constitute consumer debt under section 101(8) of the Code.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose; employment trust fund taxes are not consumer debts.

Neblett v. United States (In re AEH Trucking Co.) · filed 2018-06-29(8)

Section 101(8) defines a consumer debt as one that is "incurred by an individual primarily for a personal, family, or household purpose." ... I find that there is no genuine dispute of material fact regarding the classification of the debt as employment/trust fund taxes, nor is there a dispute regarding the amount of the seizure from the bank account as $1,403.86. Section 547(c)(9) is therefore dispositive as to this matter.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In re Maynes · filed 2019-04-18(8)

Third, the debt secured by the Truck is consumer debt. "Consumer debt" is defined in the Bankruptcy Code as "debt incurred by an individual primarily for a personal, family or household purpose." 11 U.S.C. § 101(8). Because the Debtors acquired the Truck for their personal use, this redemption requirement has also been satisfied.

Section 101(8) defines consumer debt as debt incurred by an individual primarily for a personal, family, or household purpose.

In re Cook · filed 2019-05-02(8)

Consumer debt is defined as "debt incurred by an individual primarily for a personal, family, or household purpose." 11 U.S.C. § 101(8). ... Therefore, despite BHG's unsupported-yet puzzlingly steadfast-contention that the debtor has primarily consumer debt, the Court finds that the debtor has primarily non-consumer debt.

Section 101(8) excludes an involuntarily incurred sanctions award from consumer debt when the award serves no personal, family, or household purpose.

Andrews v. Indirect Purchaser Class (IPC) · filed 2019-07-23(8)

Irrespective of their legal basis, the debts were not voluntarily incurred, and are not of a personal, family, or household nature. Like the tax debt in Westberry and the intentional tort debt in Peterson, the Court finds that the sanctions award debt is interstitial debt, which is neither consumer nor business debt.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; fees an attorney incurs as sanctions for litigation conduct are not consumer debt.

United States of America, Ex rel. Raju A.T. Dahlstrom v. Sauk-Suiattle Indian Tribe of Washington · filed 2019-11-15(8)

Section 101(8) of the Bankruptcy Code defines “consumer debt” as a “debt incurred by an individual primarily for a personal, family, or household purpose.” ... Mr. Pope incurs the fees the court awards, however, not as consumer debt, but in the course of his work as an attorney.

Section 101(8)’s definition of consumer debt applies wherever that term is used in Title 11 or the Federal Rules of Bankruptcy Procedure.

Megan Marie Teter · filed 2019-12-11(8)

The phrase “consumer debt” must have the same meaning wherever it is used in Title 11 or in the Federal Rules of Bankruptcy Procedure.

Section 101(8) treats medical bills for a debtor’s own necessary treatment as consumer debts.

Erin Marie Zgonina · filed 2019-11-19(8)

For the reasons discussed above, the Court must find that, under the circumstances presented, the Debtor’s medical bills are consumer debts.

Section 101(8) classifies a student loan as consumer debt according to its primary purpose, assessed under the totality of the circumstances.

William Todd Steiner · filed 2020-01-29(8)

Rather than adopting either a per se rule or the profit motive test, this Court believes that the appropriate way to determine whether a particular student loan constitutes consumer debt is to consider the totality of the circumstances on a case by case basis. While factors such as the debtor’s motive for incurring the debt may be relevant consideration, the purpose of the loan is determinative. This approach is consistent with the language of Section 101(8), which requires that the court consider the purpose for which the debt was incurred.

Section 101(8)’s definition of consumer debt excludes debts for income taxes.

Micah J. Ibbetson · filed 2020-03-05(8)

Debts for income taxes do not meet the definition of consumer debts under 11 U.S.C. § 101(8).

Section 101(8) defines consumer debt by the purpose for which the individual incurred it.

Robert Brett Kramer · filed 2020-04-08(8)

The use of "primarily" in § 101(8) relates to the purpose for which the debtor "incurred" the debt.

Section 101(8) defines consumer debt by its personal, family, or household purpose; a loan for business operations does not qualify.

Kennedy Funding, Inc. as Agent For Certain Co-Lenders v. Oracle Business Developments, LLC, a Virgin Islands Limited Lia · filed 2020-07-29(8)

The Code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8) (emphasis added). ... In this case, Kennedy’s loan to Oracle, for which the Jagrups were guarantors, was for the company’s business operations, not for “personal, family or household purposes.”

Section 101(8) excludes debts or judgments an individual did not intentionally incur from the definition of consumer debt, even when the conduct leading to liability was intentional.

Conde-Vidal v. Rene Pinto Lugo · filed 2020-07-29(8)

Accordingly, while the action leading to the liability may have been intentional, if the debtor did not intentionally incur the debt or judgment, it will not be considered consumer debt for purposes of § 101(8).

Student loans incurred for education that increases earning capacity can be consumer debt when their primary purpose is to benefit the debtor’s family or household.

Tristin Rae Valdivia · filed 2020-08-21(8)

The court finds that the student loans are consumer debt incurred primarily for a personal, family, or household purpose.

Section 101(8) treats debt incurred to buy a home to live in as consumer debt, even when the debtor also hopes to profit from its sale.

MARK RANDALL JUNDT and JENNIFER LYNN JUNDT · filed 2021-01-15(8)

As directed by Cox, debts in cases of mixed motives are properly characterized as consumer debts. Thus, the Court finds that the debt incurred to purchase the Long Lake Property is consumer debt.

Section 101(8) treats a debt for chiropractic services as consumer debt.

DR. GIL CENTER FOR BACK, NECK AND CHRONIC PAIN REL v. Rigney · filed 2021-10-12(8)

The debt for chiropractic services is a “consumer debt” within the definition of 11 U.S.C. § 101(8).

Section 101(8) treats a student loan incurred primarily for personal or family support as a consumer debt.

Brett M. Greer and Aimee L Greer · filed 2022-01-21(8)

The facts of this case suggest that Olivia Crisp incurred the Student Loan debt to support herself, and Mr. Greer signed as guarantor for familial support, thus making the Student Loan a consumer debt.

Section 101(8) excludes tuition loans incurred primarily to improve future earning prospects from consumer debt, even when the education is not tied to a current job opportunity.

Anvetta Maria Ruff · filed 2022-03-31(8)

A debtor who wants an education to make more money has a profit motive regardless of whether she expects additional income from an existing opportunity with her current employer or from a different position somewhere else. ... The Court concludes, therefore, that the Debtor’s student loan debt is not “consumer debt” as defined in 11 U.S.C. § 101(8).

Section 101(8) treats mortgage obligations incurred by spouses for a household purpose as consumer debts even when they own the home as tenants by the entirety.

Jesse C Campayno · filed 2022-04-27(8)

Because the Debtor does not dispute that the mortgage obligations were otherwise incurred “primarily for a personal, family, or household purpose,”96 they are consumer debts.

Section 101(8) defines consumer debt by the debtor’s personal, family, or household purpose in incurring it; a debt does not become consumer debt merely because it lacks a business purpose.

Centennial Bank v. Kane · filed 2022-07-22(8)

Centennial Bank bore the burden of showing that Kane’s debt was consumer debt—in other words, that it was incurred for a personal, family, or household purpose. See 11 U.S.C. § 101(8). It was not enough to simply show that Kane did not incur the debt for a business purpose.

Section 101(8) excludes debts incurred with a profit motive from the definition of consumer debt.

Brian R Teclaw · filed 2023-05-09(8)

The Code defines “consumer debt” as “debts incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... Therefore, the debt to Summit is not “consumer debt” as it was incurred with a profit motive.

Fraudulent intent does not disqualify a debt from consumer debt status under § 101(8).

The Golden 1 Credit Union v. Fiedler · filed 2023-11-02(8)

As a matter of law, fraudulent intent does not disqualify a debt from “consumer debt” status.

Section 101(8) defines consumer debt as debt incurred primarily for a personal, family, or household purpose; classification depends on the debtor’s primary purpose in the circumstances.

In Re: Evander Kane v. Centennial Bank · filed 2023-11-15(8)

A loan is a “consumer debt” if it was incurred “primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). ... Given that evidence and the lack of more definitive evidence, the court did not clearly err in deciding that, on this record, the best conclusion is that the four loans do not reflect consumer debts.

Section 101(8) excludes debt incurred with a profit motive from consumer debt.

Eric L. Bizeau · filed 2025-03-21(8)

A “consumer debt” is a “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8). Debts incurred with a profit motive ordinarily are not consumer debts. ... The SBA Debt was incurred with a profit motive because the loan was made in furtherance of the Agency’s business. Therefore, the SBA Debt is not a consumer debt.

Section 101(8) includes home mortgages and other secured debts incurred primarily for personal, family, or household purposes, even if the debtor intends to keep paying them.

Robby D. Garner · filed 2025-09-23(8)

There is nothing in the plain language of Sections 101(8) or 707(b) that warrants different consideration for home mortgages or other secured debt that a debtor continues to pay and for which there will be no personal liability discharged through the debtor’s bankruptcy.

A business debt is not a consumer debt under § 101(7).

Federal Deposit Insurance Corp. v. Kirsch (In Re Kirsch) · filed 1986-10-01(7)

Because the debt at issue is not a consumer debt § 523(d) of the Bankruptcy Code does not apply. See 11 U.S.C. § 101(7).

Section 101(8) treats debts incurred to refurbish a debtor's home for sale as consumer debts.

Bank One Lafayette, N.A. v. Larisey (In Re Larisey) · filed 1995-04-25(8)

The carpeting purchase and the air conditioning repair were incurred to refurbish the home for sale and are consumer debts pursuant to 11 U.S.C. § 101(8) ... 2 .

Section 101(8) defines consumer debts as debts incurred by an individual primarily for personal, family, or household purposes.

In Re Seager · filed 1997-03-27(8)

“Primarily consumer debts” are those debts which are incurred by an individual, primarily for personal, family, or household purpose. 11 U.S.C. § 101(8). The Debtors stipulate that their debts are primarily consumer debts.

Section 101(8) defines consumer debt as debt an individual incurs primarily for a personal, family, or household purpose.

In Re Zuehlke · filed 2003-08-13(8)

The Bankruptcy Code defines “consumer debt” as “debt incurred by an individual primarily for a personal, family, or household purpose.” 11 U.S.C. § 101(8) (2000).

Section 101(32)(A) defines insolvency by whether an entity’s debts exceed the fair value of its property, excluding exempt or fraudulently transferred assets.

Pappas v. Gucciardo (In re Gucciardo) · filed 2017-11-21(32)(A)

The Bankruptcy Code defines “insolvent” as a “financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation,” not including exempt or fraudulently transferred assets. 11 U.S.C. § 101(32)(A). ... Under either definition of insolvency, therefore, on this record, November 1, 2009 is the earliest date upon which Keystone could be found to have been insolvent.

Section 101(32)(A) defines insolvency by whether an entity’s debts exceed the fair value of its property.

Weisfelner v. Blavatnik (In re Lyondell Chemical Co.) · filed 2017-04-21(32)(A)

Unlike a constructive fraudulent transfer claim, which permits the plaintiff to prove insolvency by any one of three measures, the only , measure of insolvency for the purposes of a preference claim is balance sheet insolvency.

A partnership’s insolvency under § 101(32)(B) can be determined without expert testimony.

Bakst v. United States (In re Kane & Kane) · filed 2012-07-16(32)(B)

Although expert testimony is often helpful in assessing solvency, a determination of the Debtor’s solvency at the time of the Transfers does not require expert testimony. Finding whether the Debtor was insolvent, under the definitions noted above, does not present technical questions beyond the competence of lay determination.

Section 101(32) defines an individual’s insolvency by comparing debts with property at fair valuation, excluding specified transferred and exempt property.

Ruby v. Ryan (In re Ryan) · filed 2012-04-04(32)

Applying the retrojection rule to the uncontested factual record of the instant case, the Court finds that the Plaintiff has carried his burden of establishing that the Debtor was insolvent at the time the Transfers and Additional Transfers were made. The balance sheet test establishes that the Debtor was insolvent at the time the Petition was filed, on July 16, 2008.

For a corporate debtor, insolvency depends on whether its debts exceed the fair value of its property.

Cellmark Paper, Inc. v. Ames Merchandising Corp. (In Re Ames Department Stores, Inc.) · filed 2012-02-28(32)(A)

Section 101(32) of the Bankruptcy Code defines the term “insolvent,” in the context of a corporate business debtor, to mean “financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation.... ” 11 U.S.C. § 101(32)(A). ... Thus, the Bankruptcy Court did not err in concluding that, because Cellmark offered no evidence of the fair market value of Ames’ assets, it failed to rebut the presumption of insolvency.

Section 101(26)(A) defines insolvency by a balance sheet test: debts exceed assets.

Mazer v. Aetna Finance Co. (In Re Zuni) · filed 1980-08-25(26)(A)

Under the Code, insolvency is determined by a balance sheet test, i. e. whether debts exceed assets. 11 U.S.C. § 101(26)(A); 2 Collier on Bankruptcy ¶ 101.26[1] at 101-44 (15th ed. 1979).

Section 101(26) defines insolvency by a balance sheet test: a debtor is insolvent when liabilities exceed assets.

McDaniel v. Waits (In Re National Buy-Rite, Inc.) · filed 1980-11-25(26)

Under the Bankruptcy Code insolvency continues to be determined by a “balance sheet” test. A debtor is insolvent when his liabilities exceed his assets.

Section 101(26)(A) uses a balance sheet test for insolvency; a spouse’s interest in jointly held property is excluded when valuing the debtor’s property.

Eichorn v. Kovey (In Re Eichorn) · filed 1981-05-18(26)(A)

Furthermore, the estimation of value included the debtor’s wife’s interest in two parcels of property held jointly, which interest is not properly includable when determining the solvency of Mr. Eic-horn, personally.

Section 101(26) defines insolvency by a balance-sheet test: a debtor is insolvent when liabilities exceed assets.

Pettigrew v. Trust Co. Bank (In Re Bishop) · filed 1982-01-11(26)

Under the Bankruptcy Code, when insolvency is in issue, it is determined by a “balance sheet” test. A debtor is insolvent when his liabilities exceed his assets. 11 U.S.C. § 101(26).

Section 101(26) defines insolvency by whether a debtor’s liabilities exceed its assets at a fair valuation.

Thomas Farm Systems, Inc. v. Drive-Kore, Inc. (In Re Thomas Farm Systems, Inc.) · filed 1982-03-19(26)

The type of proof contemplated by the Bankruptcy Code to establish insolvency is dictated by the balance-sheet test. 11 U.S.C. § 101(26) requires that the debtors liabilities be greater than its assets at a fair valuation.

Section 101(26) defines insolvency by whether an entity’s debts exceed the fair value of its assets.

Whitlock v. Max Goodman & Sons Realty, Inc. (In Re Goodman Industries, Inc.) · filed 1982-06-21(26)

Insolvency means that the sum of an entity’s debts must be greater than a fair valuation of the entity’s assets.

Section 101(26)(A) defines insolvency by whether an entity’s debts exceed the fair value of its property.

Pirrone v. Toboroff (In Re Vaniman International, Inc.) · filed 1982-07-13(26)(A)

Vaniman was rendered insolvent because increasing its liabilities on September 4, 1979 by $125,000 resulted in its liabilities exceeding its assets. This is the test of insolvency, both under the Code (11 U.S.C. § 101(26)) and the New York Debtor and Creditor Law § 271(1). The Code defines “insolvent” as a financial condition in which the sums of an entity’s debts is greater than that of “all of such entity’s property, at a fair valuation.” 11 U.S.C. § 101(26)(A).

Section 101(26) excludes exempt property when determining insolvency under the balance sheet test.

Coleman v. Home Savings Ass'n (In Re Coleman) · filed 1982-07-15(26)

Pursuant to the provisions of § 101(26) the exempt property must be excluded when applying the balance sheet test for insolvency.

Section 101(26) measures a corporation’s insolvency by comparing its debts with its property at a fair valuation; balance sheets can support that valuation when they reflect fair value.

Consove v. Cohen (In Re Roco Corp.) · filed 1982-06-25(26)

While balance sheets may generally only reflect historical value, these unaudited statements did reflect fair value.

Section 101(26)(A)’s definition of insolvency is satisfied when a debtor’s transfer of his only substantial assets in exchange for payment of some debts leaves him insolvent.

Brown v. Black (In Re Hollander) · filed 1982-12-21(26)(A)

Because the farm land and the machinery were the only real assets of the debtor’s estate, there can be no doubt that their sale in exchange for the repayment of some of his debts rendered the debtor insolvent as defined in 11 U.S.C. § 101(26)(A) thus satisfying § 548(a)(2)(B).

Section 101(26) defines insolvency by comparing debts with assets at fair valuation, excluding exempt property and property transferred, concealed, or removed with intent to hinder, delay, or defraud creditors.

Hunter v. S.K. Austin Co. (In Re Beck) · filed 1982-12-23(26)

The trustee has the burden to prove that, at the time of the preferential transfer, the debtor’s liabilities exceed his assets exclusive of property transferred, concealed, or removed with intent to hinder, delay, or defraud his creditors and exclusive of exempt property. ... In sum, Debtor’s liabilities in this case far exceed his assets and therefore the Trustee has shown that Debtor was insolvent at the time of the transfer in question.

Section 101(26) defines insolvency as debts exceeding the fair value of property.

Kuhn v. Nance (In Re Nance) · filed 1982-12-28(26)

The term “insolvent” is defined at 11 U.S.C. § 101(26) to mean, generally stated, that the sum of one’s debts is greater than the value of his property at a fair valuation.

Section 101(26)(A) defines insolvency as a financial condition in which an entity’s debts exceed the fair value of its property.

Kanasky v. Randolph (In Re R. Purbeck & Associates, Ltd.) · filed 1983-03-08(26)(A)

Section 101(26) of the Bankruptcy Code defines insolvency in pertinent part as: “(A) financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation ...” ... In view of the forgoing, I find that the plaintiff failed to sustain his burden of proof on the issue of insolvency.

Section 101(26) defines insolvency for a corporate debtor; the court applied it to a debtor with negative net worth.

McCulloch v. Williams (In Re McCulloch & Son, Inc.) · filed 1983-05-06(26)

Plaintiff could not legally exercise the option to acquire the life insurance policy in this case and the debtor could not legally perform the option because the debtor was insolvent within the meaning of 11 U.S.C. § 101(26) before and after April 15, 1981 when he exercised the option.

Section 101(26) defines insolvency for assessing a debtor’s financial condition.

United States v. Beattie (In Re Beattie) · filed 1983-05-09(26)

This Court finds as a matter of fact from the evidence that the Debtor was insolvent, under the definition of 11 U.S.C. § 101(26) during the entire period one year pre-petition and certainly post-petition.

Section 101(26) measures corporate insolvency by comparing debts with the fair value of the corporation’s property; an unaudited balance sheet can support that determination when it sufficiently approximates fair value.

In Re Roco Corporation, D/B/A Standard Supply Company, Debtor. Edward Consove v. Cohen · filed 1983-03-02(26)

The Bankruptcy Code defines “insolvency” with respect to a corporate entity as a “financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation, exclusive of ... property transferred, concealed, or removed with intent to hinder, delay, or defraud such entity’s creditors .. .. ” 11 U.S.C. § 101(26) (Supp. V 1981). ... The bankruptcy court clearly did not err in relying on Roco’s unaudited balance sheet to determine that the company was insolvent.

Section 101(26) defines insolvency as a financial condition in which an entity’s debts exceed the fair value of its property.

Emerald Hills Country Club, Inc. v. Hollywood, Inc. (In Re Emerald Hills Country Club, Inc.) · filed 1983-06-17(26)

11 U.S.C. § 101(26) defines “insolvent” to be ... “that financial condition such that the sum of such entity’s debts is greater than all of such entity’s property at a fair valuation”.

Section 101(26) defines insolvency by a balance sheet test: debts exceed property at a fair valuation.

Foley v. Briden (In Re Arrowhead Gardens, Inc.) · filed 1983-08-12(26)

Insolvency is defined in 11 U.S.C. Section 101(26) as an entity’s “financial condition such that a sum of such entity’s debts is greater than all of such entity’s properties, at a fair valuation ....”. Thus, under the Bankruptcy Code, insolvency is determined by the traditional balance sheet test.

Section 101(26)(A) uses a balance sheet test for insolvency that requires consistent treatment of related assets and liabilities.

George H. Clay, Trustee and Securities Investor Protection Corp. v. Traders Bank of Kansas City · filed 1983-06-08(26)(A)

Because both the par value of the water bonds and the value of the related debt exceed $300,000.00, either subtraction of the water bonds from assets or addition of the debt to liabilities would result in a finding of insolvency under the balance sheet test.

Section 101(26)(A) uses a balance sheet test for insolvency, with assets valued at market value rather than book value.

Varon v. Trimble, Marshall & Goldman, P.C. (In Re Euro-Swiss International Corp.) · filed 1983-10-18(26)(A)

A balance sheet test applies. 11 U.S.C. § 101(26)(A). Assets are to be valued at market value, not book value.

Section 101(26) defines insolvency by comparing the value of a debtor’s property with the sum of its debts, without regard to whether the debtor can pay bills as they come due.

Keydata Corp. v. Boston Edison Co. (In Re Keydata) · filed 1983-12-05(26)

Insolvency, as defined in 11 U.S.C. Section 101(26), means the sum of one’s debts exceeds his property. This traditional balance sheet test of insolvency examines the value of assets compared with liabilities, and does not consider whether one is able to pay debts as they accrue.

Section 101(26)(A) requires contingent liabilities to be counted when determining whether a debtor is insolvent.

Hyman v. Porter (In Re Porter) · filed 1984-01-11(26)(A)

When the definitions of 11 U.S.C. § 101 are applied to the insolvency provisions of § 548, the inescapable conclusion is that all liabilities contingent or otherwise must be considered in determining whether a debtor was insolvent at the time of the transfer in question.

Section 101(26) defines insolvency by whether an entity’s debts exceed the fair value of its property.

Precision Masters, Inc. v. Wilson-Garner Co. (In Re Precision Masters, Inc.) · filed 1984-04-19(26)

The debtor was insolvent as defined in the Bankruptcy Code under 11 U.S.C. § 101(26), in which insolvent is defined as “a financial condition such as that the sum of the entity’s debts is greater than all the entity’s property, at fair valuation.”

Section 101(26)’s definition of insolvency applies to reclamation claims under § 546(c), even when another law uses a different definition.

In Re Furniture Distributors, Inc. · filed 1984-09-14(26)

Accordingly, express use of the term “insolvent” in 11 U.S.C. § 546(c) and the applicable Bankruptcy Code definition contained in § 101 act to limit the scope of any statutory or common law right to reclamation, despite such statutory or common law reliance upon a different definition of “insolvency.”

Section 101(26) measures insolvency by comparing debts with property at fair value, based on what the debtor could reasonably raise in a short period without a forced sale.

Jahn v. Reading Body Works, Inc. (In Re A. Fassnacht & Sons, Inc.) · filed 1984-12-20(26)

The general idea of fair value is the amount of money that the debtor could raise from its property in a short period of time, but not so short as to approximate a forced sale, if the debtor operated as a reasonably prudent and diligent businessman with his interests in mind, especially a proper concern for the payment of his debts.

Section 101(26) excludes exempt property when determining whether a debtor's debts exceed the value of the debtor's property.

Jacobson v. First State Bank of Benson (In Re Jacobson) · filed 1985-04-04(26)

Even after subtracting the claimed exemptions, Plaintiff had a net worth of $166,601.90 after the sale. Therefore, he was not rendered insolvent by the transfer.

Section 101(29) defines insolvency as a financial condition in which an entity’s debts exceed its property.

Fargo Biltmore Motor Hotel Corp. v. Metropolitan Federal Bank (In Re Fargo Biltmore Motor Hotel Corp.) · filed 1985-05-09(29)

Insolvency, as defined in section 101(29) of the Bankruptcy Code, means simply a financial condition such that the sum of such entity’s debts is greater than all of such entity’s property. It is apparent that Metropolitan’s foreclosure of the motel property has rendered Biltmore insolvent.

Section 101(29)(A)(ii) excludes exempt property from the assets counted when determining whether a debtor is insolvent.

Willis v. Borg-Warner Acceptance Corp. (In Re Willis) · filed 1985-03-21(29)(A)(ii)

Insolvency is determined by reference to section 101(29) of the Code, which employs the balance sheet test for insolvency. ... The debtor is insolvent if the sum of its debts is greater than the sum of its assets, at a fair valuation, exclusive of property exempted under section 522 or fraudulently transferred.

Section 101(29) defines insolvency by a balance sheet test, which applies to a seller’s reclamation rights under § 546(c).

In Re Storage Technology Corp. · filed 1985-04-29(29)

For these reasons, this Court finds that the definition of insolvent found at 11 U.S.C. § 101(29) shall apply to a seller’s reclamation rights under 11 U.S.C. § 546(c).

Section 101(29)(A) values assets by what a capable and diligent seller could realize within a reasonable time through collection or sale at regular market value.

In Re Storage Technology Corp. · filed 1985-07-17(29)(A)

Colher points out that the concept of “fair valuation” involves the estimate of what can be realized out of the assets “within a reasonable time either through collection or sale at the regular market value, conceiving the latter as the amount which could be obtained for the property in question within such period by a ‘capable and diligent businessman’ from an interested buyer ‘who is willing to purchase under the ordinary selling conditions.’ ” ... I adopt that summary as the concept of fair valuation which is to be used in this case.

Section 101(29) excludes exempt property from the assets counted when determining insolvency for a preferential transfer.

Mazer v. Roadrunner Trucking Inc. (In re Espinoza) · filed 1985-07-23(29)

The clear intent of Congress is for the definition of insolvency to be consistent throughout the code, and thus the proper method for determining insolvency for purposes of preferential transfers is by using a balance sheet test to determine whether the debts are greater than the assets, excepting the exempt property. 11 U.S.C. § 101(29).

Section 101(26) defines insolvency by comparing an entity’s debts with the fair value of its property; asset values need not be exact.

Richard J. BRIDEN, Appellant, v. Anne FOLEY, Trustee in Bankruptcy, Appellee · filed 1985-11-08(26)

Insolvency is defined by the Bankruptcy Code as an entity’s “financial condition such that the sum of such entity’s debts is greater than all of such entity’s properties, at fair valuation ...”. 11 U.S.C. § 101(26) (Supp. V 1981). ... This balance sheet test focuses on the fair market value of the debtor’s assets and liabilities within a reasonable time of the transfers. Asset valuation need not be exact.

Section 101(29)(A) defines a corporation as insolvent when its debts exceed the fair value of all its property.

Join-In International (U.S.A.) Ltd. v. New York Wholesale Distributors Corp. (In Re Join-In International (U.S.A.) Ltd.) · filed 1986-01-07(29)(A)

Under the Code, a corporation is insolvent when the sum of its “debts is greater than all of [its] property, at a fair valuation.” 11 U.S.C. § 101(29)(A).

Section 101(26) supplies the insolvency test throughout the Bankruptcy Code absent a clear indication to the contrary.

Allstate Fabricators Corp. v. Flagstaff Foodservice Corp. (In Re Flagstaff Foodservice Corp.) · filed 1986-01-14(26)

The definitional sections, absent a clear indication to the contrary, are applicable to all provisions of the Bankruptcy Code. Accordingly, the question of insolvency is to be determined by the test enunciated in Section 101(26).

Section 101(26)(A) defines insolvency by whether a debtor’s liabilities exceed the value of its assets, rather than whether it pays debts on time.

Jahn v. Fassnacht (In re A. Fassnacht & Sons, Inc.) · filed 1986-01-21(26)(A)

Financial difficulties, cash flow problems, or even inability to pay debts as they mature, are not the same as insolvency under the preference statute. For purposes of the preference statute, insolvency means the debtor’s liabilities exceed the value of its assets. 11 U.S.C. § 101(26)(A).

Section 101(29) includes a test for insolvency that compares an entity’s debts with its property.

Iannacone v. Capital City Bank (In Re Richards) · filed 1986-02-03(29)

Insolvency is defined, in part, to include a financial condition such that the sum of an entity’s debts is greater than all of its property. ... K-Pat simply never had any debts either before or after the transfer complained of. ... Accordingly, the Debtor was not insolvent at the time it granted the Oak Park and Capital security interest or at the time that the interest attached in the artwork; nor was K-Pat rendered insolvent as a result of the transaction.

Section 101(29) uses a balance-sheet test for insolvency; inability to pay debts as they mature does not satisfy that definition.

Dumont v. Aiudi (In Re Dumont) · filed 1986-03-12(29)

11 U.S.C. § 101(29) defines the term “insolvent” as ... We have been provided with no authority to support that assertion, and see no reason why we are not required to apply the statutorily defined balance sheet test of insolvency here.

Section 101(26) defines insolvency through a balance sheet test: the debtor’s liabilities must exceed its assets at a fair valuation, subject to specified exclusions.

Foreman Industries, Inc. v. Broadway Sand & Gravel (In Re Foreman Industries, Inc.) · filed 1986-03-24(26)

Insolvency then is essentially a balance sheet test: that is, a debtor is insolvent when the debtor’s liabilities exceed the debtor’s assets, excluding the value of preferences, fraudulent conveyances and exemptions.

Section 101(26) defines insolvency by whether a debtor’s debts exceed the fair value of its property.

Derryberry v. Albers (In Re Albers) · filed 1986-04-16(26)

Since such a situation meets the definition of insolvency under 11 U.S.C. Section 101(26), it must be concluded that the Debtors were insolvent at the time the transfer was made.

Section 101(29) calls for a fair valuation of assets when determining insolvency, so current appraisals can be more accurate than balance sheet values.

American Insulator Co. v. Marsh Plastics, Inc. (In Re American Insulator Co.) · filed 1986-05-14(29)

We therefore conclude that current appraisals of the debtor’s assets afford a more accurate determination of the debtor’s solvency than can be had solely by reference to the balance sheet.

Section 101(29) defines insolvency by comparing an entity’s debts with the fair value of its property.

McColley v. Navaro Gem Ltd. (In Re Candor Diamond Corp.) · filed 1986-12-11(29)

That definition utilizes a “balance sheet” test to determine solvency, that is, we look to whether the entity’s debts exceed its property, fairly valued.

Section 101(31) defines insolvency through a balance sheet test that compares debts with property at a fair valuation.

Ossen v. Bernatovich (In Re National Safe Northeast, Inc.) · filed 1987-07-29(31)

In fraudulent transfer and preference actions under the Bankruptcy Code (Code), insolvency is determined according to the “balance sheet” test. 11 U.S.C. § 101(31) states that “ ‘insolvent’ means — (A) ... financial condition such that the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation, exclusive of — (i) property [fraudulently] transferred ....”

Section 101(26)(A) defines insolvency by comparing the fair value of a debtor’s assets with its liabilities.

Siple & Orrock v. Rechnitzer (In re M.B.K., Inc.) · filed 1987-10-09(26)(A)

Furthermore, viewed in any light the fair value of debt- or’s assets did not exceed the liabilities on the date of the transfers.

Section 101(31) defines insolvency by whether a debtor’s debts exceed the fair value of its property.

Tavormina v. Weiss (In re Behr Contracting, Inc.) · filed 1987-10-22(31)

The financial records of the debtor, as audited by their accountants and, as reviewed by the accountant for the trustee who testified as an expert, indicates that on October 18, 1984, the day of the transfers, the debtor was insolvent as defined by Bankruptcy Code § 101(31) in that the sum of its debts were greater than all of its property at fair value.

Section 101(29) defines insolvency by comparing debts with the fair value of property, excluding property the debtor may exempt.

Quinn v. Fidelity Financial Services Inc. (In Re Quinn) · filed 1986-10-27(29)

It is readily apparent that prior to the foreclosure the sum of the Debtor’s debts is far less than the value of the Debtor’s properties exclusive of his exempt properties.

Section 101(29)(A) measures insolvency by whether the debtor’s liabilities exceed its assets.

Courtney v. Octopi, Inc. · filed 1986-12-05(29)(A)

Section 547(b)(3) is concerned solely with an objective question: whether the debtor’s liabilities exceeded its assets on the date of the transfer sought to be avoided. 11 U.S.C. § 101(29)(A) (defining insolvency); see Barash v. Public Finance Corp., 658 F.2d 504, 510 (7th Cir.1981) (legislative history of § 547 supports view that preferential nature of transaction is determined by objective criteria).

Section 101(31)(A) defines insolvency for an entity other than a partnership by whether its debts exceed the fair value of its property, subject to specified exclusions.

Murphy v. Robinson (In Re Ipswich Bituminous Concrete Products, Inc.) · filed 1987-11-02(31)(A)

The Bankruptcy Code prescribes a standard balance sheet test for determining solvency. ... As of October 31, 1985, the Debtor’s unaudited balance sheet shows that its liabilities exceeded its assets.

Section 101(31)(A)(ii) excludes exempt property when determining whether a debtor’s debts exceed the value of the debtor’s assets.

In Re Corbett · filed 1987-11-10(31)(A)(ii)

Considering that each of the Debtors is entitled to exemptions of $1,200.00 in a motor vehicle, 11 U.S.C. § 522(d)(2); $4,000.00 in aggregate value of household goods, 11 U.S.C. § 522(d)(3); and $4,150.00 in “any property ... plus ... any unused amount of exemption provided under paragraph (1) of this subsection,” 11 U.S.C. § 522(d)(5), the Debtors clearly had no non-exemptable property; did not have assets greater than their debts; and hence became insolvent as a result of the sheriff’s sale. See 11 U.S.C. §§ 101(31), 548(a)(2)(B)®.

Section 101(31) defines insolvency through a balance sheet test that compares liabilities with the fair value of nonexempt assets.

Walker v. Littleton (In Re Littleton) · filed 1988-01-18(31)

Whether the Debtor was insolvent on the date of the foreclosure sale is answered by applying Code Section 101(31) to the facts at hand. Code Section 101(31) defines “insolvent” in terms of a balance sheet test. The burden is on the Trustee to prove that at the time of the foreclosure that the Debtor’s liabilities exceeded his assets, at fair evaluation, exclusive of his allowable exemptions under Code Section 522.

A debtor is insolvent when its debts exceed its assets at a fair valuation.

Homestead Manufacturing, Inc., Formerly Known as Homestead Distributors, Inc. v. Don R. Ligon, Dianne M. Ligon, and Theo · filed 1988-05-10(31)(A)

A debtor is insolvent when the sum of its debts is greater than the sum of its assets at a fair valuation.

Section 101(31)(A) uses a balance sheet test for insolvency, comparing a debtor’s liabilities with assets at the relevant time.

Carlson v. Rose (In Re Rose) · filed 1988-05-13(31)(A)

Under the “balance sheet” definition of insolvency prescribed in 11 U.S.C. § 101(31)(A), the Court must determine whether at the time the judgment liens arose debtors’ liabilities were greater than their assets.

Section 101(31) requires assets to be assessed at fair valuation; values based on cost less depreciation do not establish insolvency.

Matter of K & R Min., Inc. · filed 1988-06-01(31)

In the instant proceeding, the inventory and fixed assets of Mining listed on the balance sheet were valued at cost. Additionally, depreciation was taken against the fixed assets. ... This is clearly not "fair valuation" as contemplated by the Bankruptcy Code and accordingly, the court cannot find from the evidence before it that Mining was insolvent when the transfer occurred.

Section 101(31)(A) defines insolvency by whether an entity’s debts exceed the fair market value of its property.

Armstrong v. Ketterling (In Re Anchorage Marina, Inc.) · filed 1988-07-20(31)(A)

The Bankruptcy Code defines “insolvency” as the condition that exists when an entity’s debts are greater than the fair market value of its property. 11 U.S.C. § 101(31)(A). ... Thus Anchorage was insolvent under the section 101(31)(A) definition at the moment of its creation.

Section 101(26)(A) defines insolvency by comparing the fair value of an entity’s debts with the fair value of its property.

Hargrave v. Boehmer (In Re F.H.L., Inc.) · filed 1988-08-25(26)(A)

This section incorporates the “balance sheet” test of insolvency. In other words, a debtor is insolvent when the fair value of his liabilities exceeds the fair value of his assets.

Section 101(31) treats a corporation as insolvent when its debts exceed the fair value of its property; assets are valued at a price obtainable through a prudent sale over a reasonable period.

Sleepy Valley, Inc. v. Leisure Valley, Inc. (In Re Sleepy Valley, Inc.) · filed 1988-09-06(31)

Generally, a corporation is deemed “balance sheet” insolvent for preference purposes if the sum of its debts exceeds all of the entity’s property at fair valuation, exclusive of certain items not relevant here. 11 U.S.C. § 101(31). Courts are in general agreement that “fair value” is neither the worst-case nor best-case scenario. Rather, the assets should be valued at that price obtainable in the market if sold in a prudent manner over a reasonable period of time.

Section 101(31)’s balance-sheet definition of insolvency governs a seller’s reclamation claim under Section 546(c).

Lawrence Pharmaceuticals, Inc. v. Best Buy Drugs, Inc. (In Re Best Buy Drugs, Inc.) · filed 1988-08-23(31)

The overwhelming weight of authority holds and this Court holds that the word insolvent as used in 11 U.S.C. § 546(c) refers to the Bankruptcy Code definition of insolvent as it appears in 11 U.S.C. § 101(31) rather than the definition of insolvent in the State, statutes and the Uniform Commercial Code.

Section 101(31)(A) defines insolvency by whether a debtor’s debts exceed the fair value of its property.

Ohio Corrugating Co. v. DPAC, Inc. · filed 1988-09-26(31)(A)

A debtor is deemed to be insolvent when “the sum of such entity’s debts is greater than ... [a fair valuation] of such entity’s property.” 11 U.S.C. Sec. 101(31)(A). Fair valuation has been construed to refer to the fair market value of the Debtor’s assets and liabilities within a reasonable time of the transfer.

Section 101(31)(A)(ii) excludes claimed exempt property from the debtor’s assets when calculating insolvency.

Kepler v. Weis (In Re Weis) · filed 1988-10-26(31)(A)(ii)

The trustee’s argument appears sound. The insolvency calculation made in the previous case did not exclude potentially exempt assets because the debtor had made no exemption claims. Now that the exemption claim has been made, the question of solvency on April 10, 1985, is markedly different.

Section 101(31)(A)(ii) excludes exempt assets from a balance-sheet determination of insolvency.

Lewis v. Maloon (In Re Lewis) · filed 1988-11-18(31)(A)(ii)

Exempt assets are not included when a balance sheet determination is made whether the debtor is solvent or insolvent, 11 U.S.C. § 101(31)(A)(ii).

Section 101(31) defines insolvency as a debtor having liabilities greater than its assets.

Pioneer Technology, Inc. v. Eastwood (In Re Pioneer Technology, Inc.) · filed 1988-11-23(31)

Insolvency, as defined in 11 U.S.C. § 101(31), means that the sum of a debtor’s liabilities exceeds the sum of its assets.

Section 101(31)(A)’s “fair valuation” standard permits an insolvency allegation based on the fair saleable value of assets, taking illiquidity into account.

Wieboldt Stores, Inc. v. Schottenstein · filed 1988-12-01(31)(A)

“Fair valuation” is near enough in meaning to “fair value of saleable assets” to defeat defendants’ motion to dismiss.

Section 101(31)(A) uses a balance sheet test for insolvency: debts must exceed property at a fair valuation, excluding exempt property; inability to pay debts as they come due is insufficient.

In Re Demetrius Koubourlis Toni J. Koubourlis, Debtors. Robert William Akers v. Demetrius Koubourlis Toni J. Koubourlis · filed 1989-03-13(31)(A)

Inability to pay debts in the ordinary course of business is insufficient to establish insolvency — there must be evidence that assets, at fair evaluation, exclusive of exempted property, are exceeded by the debts.

For a partnership, insolvency is determined by including each general partner’s nonpartnership assets to the extent they exceed nonpartnership debts, excluding property transferred, concealed or removed to hinder, delay or defraud creditors.

Writing Sales Ltd. Partnership v. Pilot Corp. of America (In Re Writing Sales Ltd. Partnership) · filed 1989-01-25(31)(B)

In a partnership case, the issue of insolvency includes consideration of the general partner’s assets. Thus, for the purpose of determining a partnership’s solvency, each general partner’s assets (other than property transferred, concealed or removed with intent to hinder, delay or defraud creditors) must be taken into account along with the debtor’s to the extent that the value of nonpartnership property exceeds nonpartnership debts. 11 U.S.C. § 101(31)(B).

Section 101(26)(A) allows the factfinder to value a debtor’s property by the means most appropriate to the circumstances when determining insolvency.

Louis Porter, John B. Jarboe, Trustee-Appellee v. Yukon National Bank, a National Banking Association · filed 1989-01-25(26)(A)

Because the value of property varies with time and circumstances, the finder of fact must be free to arrive at the “fair valuation” defined in § 101(26) by the most appropriate means.

Section 101(31)(A) defines insolvency as debts exceeding the value of all property at a fair valuation.

Mellon Bank, N.A. v. Metro Communications, Inc. (In Re Metro Communications, Inc.) · filed 1989-02-10(31)(A)

By clear logic the very transactions themselves caused a serious case of insolvency, which has been defined under the Code as “when the sum of [its] debts is greater than all of [its] property, at a fair valuation.” 11 U.S.C. § 101(31)(A).

Section 101(31) uses a balance sheet test for insolvency, comparing debts with the fair value of assets and assigning no value to uncollectible receivables.

Pinto v. Philadelphia Fresh Food Terminal Corp. (In Re Pinto) · filed 1989-03-30(31)

In light of our conclusion that these accounts were not collectible, we assign no value to this alleged asset in our “balance sheet” computation.

Section 101(31) defines insolvency by whether the debtor’s debts exceed the fair value of its assets, subject to statutory exceptions.

Dent v. Martin · filed 1989-04-26(31)

The trustee must prove that the sum of the debtor’s debts at the time of the transfer exceeded the fair valuation of the debtor’s assets (with certain exceptions stated in § 101).

Section 101(31) supplies the balance sheet definition of insolvency for reclamation claims under § 546(c).

Silco Distributing Co. v. Buyer's Club Market, Inc. (In Re Buyer's Club Market, Inc.) · filed 1989-05-02(31)

For purposes of § 546(c), the “insolvency” definition of 11 U.S.C. § 101(31) applies, i.e. the “balance sheet test”.

Section 101(31) includes general partners’ nonpartnership property in the calculation of a partnership’s insolvency, except exempt property and property transferred with intent to hinder, delay or defraud creditors.

First National Bank in Anoka v. Minnesota Utility Contracting, Inc. (In Re Minnesota Utility Contracting, Inc.) · filed 1989-06-02(31)

Section 101(31) includes in the calculation of a partnership’s insolvency all general partners’ nonpartnership property except property transferred with intent to hinder, delay or defraud and exempt property.

Section 101(31) measures insolvency by whether liabilities exceed the fair value of assets.

Toshiba America, Inc. v. Video King of Illinois, Inc. (In Re Video King of Illinois, Inc.) · filed 1989-06-06(31)

As indicated in Footnote 5, supra, “insolvency’ here is Bankruptcy Code insolvency as defined in 11 U.S.C. § 101(31), i.e., the fair value of assets less than amount of liabilities.

Section 101(26) defines an entity as insolvent when its debts exceed the fair value of its property.

Pryor v. Cohen (In Re Blue Point Carpet, Inc.) · filed 1989-06-19(26)

Under the definitions in the Bankruptcy Code, a debtor is “insolvent” when “the sum of such entity’s debts is greater than all of such entity’s property, at a fair valuation.” 11 U.S.C. § 101(26). ... Thus, on the present record there is no material issue of fact but that the debtor was insolvent on March 7, 1986 and for the preceding 90 days.

Section 101(31) defines insolvency by comparing an entity’s debts with its property at a fair valuation.

War Eagle Floats, Inc. v. Travis (In Re War Eagle Floats, Inc.) · filed 1989-09-14(31)

This term “insolvency” used throughout the Code refers to the balance sheet insolvency (i.e., assets vs. liabilities) as opposed to other tests for insolvency found elsewhere in the law (e.g., the Uniform Commercial Code).

Section 101(31)(A)(ii) excludes allowable exemptions from a debtor’s assets when calculating insolvency.

Barrett v. Commonwealth Federal Savings & Loan Ass'n (In Re Barrett) · filed 1989-08-17(31)(A)(ii)

However, it is equally clear that the Husband’s exemptions allowable under 11 U.S.C. § 522(d) are deductible from his assets in the “balance sheet test” equation.

Section 101(31) defines insolvency by a balance sheet test: liabilities must exceed assets valued fairly, excluding exempt and fraudulently concealed or transferred property.

Ruff v. Vurchio (In Re Vurchio) · filed 1989-10-30(31)

In proving the element of insolvency, 11 U.S.C. § 101(31) defines insolvent to mean “financial condition such that the sum of an entity’s property, at a fair valuation, exclusive of ...” property that has been exempted or fraudulently concealed or transferred. In essence, a balance sheet test where the liabilities must exceed the assets for the debtor to be considered insolvent.

Section 101(31) treats debtors as insolvent when their debts exceed their assets.

Brasby v. Joseph C. Perry, Inc. (In Re Brasby) · filed 1990-01-02(31)

The evidence was clear that either just before or just after the challenged sheriff sale, the debtors were insolvent, as their debts exceeded their assets. 11 U.S.C. § 101(31).

Section 101(31)(A) defines insolvency by whether an entity’s debts exceed the fair value of its property, assessed during the relevant period without relying on hindsight.

Energy Cooperative, Inc. v. Cities Service Co. (In Re Energy Cooperative, Inc.) · filed 1989-12-13(31)(A)

The Bankruptcy Code defines “insolvent” as a “financial condition such that the sum of such entity’s debts is greater than all of such entity’s property at a fair valuation ...” 11 U.S.C. § 101(31)(A). ... The only reasonable conclusion compelled from all of the evidence is that the ECI refinery had no value at any time during the 90 day preference period. Because of that, ECI was insolvent each and every day of the entire 90 day preference period.

Section 101(31)(B) counts a partnership’s property and the excess value of each general partner’s nonpartnership property over that partner’s nonpartnership debts when determining insolvency.

First National Bank v. Minnesota Utility Contracting, Inc. (In Re Minnesota Utility Contracting, Inc.) · filed 1990-02-01(31)(B)

If, as the Bank itself argues, Leasing’s net worth on February 23 was only $111,000, then clearly it was rendered insolvent by its pledge of its assets to the Bank worth $222,616. Thus, Leasing was rendered insolvent by the pledge, even if the full amount of Contracting’s debt to the Bank is not counted.

Section 101(31) defines insolvency by comparing a debtor’s debts with her property at fair market value, excluding exempt property; a foreclosure sale can render the debtor insolvent by removing her only nonexempt asset.

Sims v. Talman Home Mortgage (In Re Sims) · filed 1990-03-15(31)

Insolvency, for purposes of § 548, is determined by reference to § 101(31) of the Bankruptcy Code. ... After the sheriff’s sale, the Debtor no longer had title to the property that was her only non-exempt asset, but she still had $3,727.00 in debts. She was therefore rendered insolvent by that sale.

Section 101(31)(A) defines insolvency as a financial condition in which debts exceed property.

Sweeney v. Ameritrust Co. (In Re Sweeney) · filed 1990-04-17(31)(A)

Insolvency is generally defined as the financial condition of having one’s debts exceed one’s property. 11 U.S.C. § 101(31)(A).