Insolvency. — Alabama Code § 8-9B-3
Alabama Code § 8-9B-3 — Insolvency.. Reproduced from the official Code of Alabama, with a citation summary, verification link, and related provisions.
§ 8-9B-3. Insolvency.
(a) A debtor is insolvent if the sum of the debtor’s debts at a fair valuation is greater than the sum of the debtor’s assets at a fair valuation.
(b) 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) 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) 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.
Source: official Alabama text · Last verified 2026-08-27
At a glance
- Citation: Code of Alabama § 8-9B-3
- Jurisdiction: Alabama
- Code: Code of Alabama
- Subject: Insolvency.
- Text: transcribed from the official source (verify below)
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Statute text is transcribed from the official Code of Alabama. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Alabama attorney.
Common questions
What is the source of Code of Alabama § 8-9B-3?
The text above is transcribed from the Code of Alabama, the codified statutes of Alabama. The official publisher link appears under "Verify the text" on this page.
What subject does Code of Alabama § 8-9B-3 address?
It addresses "Insolvency.". Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Code of Alabama § 8-9B-3 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Alabama source before relying on this text.
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