Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
That statute gives 3 definitions of "insolvency": 1) "ceased to pay", 2) "cannot pay", 3) "within the meaning of federal bankruptcy law".
The Bankruptcy court does not apply the first two meanings to determine insolvency, and must find a determination of insolvency based on the definition in Bank. Stat. 101(32).
101 (32) My house , the fair value, in June 09, which will be a reference point for my purpose, was assesed as fair value, per my towns asseor, some $30,000 plus more then all my debts including the mortgages on the house. Must the trustee base his solvency test based on my towns fair assesment? There is no homestaed clause in MD therefore, from what I understand, the entire fair value of the house is considered an asset.
Wanrt to verify.
If the town assessment was truly the current market value, that is what a Bankruptcy trustee would go by. If the market value was more than your total debts, then you were solvent.
However, don't forget that a debtor must have been solvent before and immediately after a transfer of property if the property was transferred for less than market value.
I was considered solvent thru Jan 10 when I lost my job, from my understanding of solvent per Chapter 7 requirements. My income and SS for my children was more per month then my monthly liabilities. Once again solvent, to make absolutely clear, for chapter 7 is: Assets are more then liabilities?
If you can verify that I beliece my question is answered.