{"id":1889,"date":"2021-10-25T03:56:23","date_gmt":"2021-10-25T03:56:23","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1889"},"modified":"2022-05-09T19:41:20","modified_gmt":"2022-05-09T19:41:20","slug":"caci-4206-presumption-of-insolvency","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4206-presumption-of-insolvency\/","title":{"rendered":"CACI 4206 Presumption of Insolvency"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2c0qdz-86821963fc561d634f7cf3ff7de9a033\">\n#top .av-special-heading.av-kv2c0qdz-86821963fc561d634f7cf3ff7de9a033{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv2c0qdz-86821963fc561d634f7cf3ff7de9a033 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv2c0qdz-86821963fc561d634f7cf3ff7de9a033 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv2c0qdz-86821963fc561d634f7cf3ff7de9a033 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4206 Presumption of Insolvency<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 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data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2c1sp7-fb161b64b41f77cf31314acd90a265ba\">\n#top .av_textblock_section.av-kv2c1sp7-fb161b64b41f77cf31314acd90a265ba .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv2c1sp7-fb161b64b41f77cf31314acd90a265ba '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4206\u00a0Presumption of Insolvency<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">A debtor who is generally not paying [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] debts as they become due, other than because of a legitimate dispute, is presumed to be insolvent.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">In determining whether [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was generally not paying [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] debts as they became due, you may consider all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(a)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The number of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s debts;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(b)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The percentage of debts that were not being paid;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(c)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">How long those debts remained unpaid;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(d)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Whether special circumstances explain any failure to pay the debts; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">(e)<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s payment practices before the period of alleged nonpayment [and the payment practices of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s [trade\/industry]].<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">If [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] proves that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was generally not paying debts as they became due, then you must find that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was insolvent unless [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] proves that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was solvent. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New June 2006; Revised June 2016 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>This instruction should be read in conjunction with\u00a0CACI No. 4203,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Constructive Fraudulent Transfer<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u2014Insolvency\u2014<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Essential Factual Elements<\/span>, and\u00a0CACI No. 4205,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Insolvency Explained<\/span>. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Presumption of Insolvency.\u00a0Civil Code section 3439.02(b).<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cSubdivision (c) [now subdivision (b)] establishes a rebuttable presumption of insolvency from the fact of general nonpayment of debts as they become due. \u2026 The presumption imposes on the party against whom the presumption is directed the burden of proving that the nonexistence of insolvency as defined in subdivision (a) is more probable than its existence.\u201d (Legislative Committee Comment to\u00a0Civil Code section 3439.02.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn determining whether a debtor is paying its debts generally as they become due, the court should look at more than the amount and due dates of the indebtedness. The court should also take into account such factors as the number of the debtor\u2019s debts, the proportion of those debts not being paid, the duration of the nonpayment, and the existence of bona fide disputes or other special circumstances alleged to constitute an explanation for the stoppage of payments. The court\u2019s determination may be affected by a consideration of the debtor\u2019s payment practices prior to the period of alleged nonpayment and the payment practices of the trade or industry in which the debtor is engaged.\u201d (Legislative Committee Comment to\u00a0Civil Code section 3439.02.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>Ahart, California Practice Guide: Enforcing Judgments &amp; Debts, Ch. 3-C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Prelawsuit Considerations<\/span>, \u00b6\u20093:328 (The Rutter Group)<\/div>\n<div>23\u00a0California Forms of Pleading and Practice, Ch. 270,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraudulent Conveyances<\/span>, \u00a7\u2009270.42[3][e],\u00a0[4]\u00a0(Matthew Bender)<\/div>\n<div>26\u00a0California Forms of Pleading and Practice, Ch. 307,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Insolvency<\/span>, \u00a7\u2009307.20 (Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7zprjl-64c741d7c27c52b2c8cedc8f7e4cbaf6 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5guswx-07c3327f10151660cd8ef85eea5f20cd\">\n#top .av_textblock_section.av-5guswx-07c3327f10151660cd8ef85eea5f20cd .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5guswx-07c3327f10151660cd8ef85eea5f20cd '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1889","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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