Assemble the facts in the file for a solvency discussion
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- List the dates and amounts of debts due, payments missed, and balance-sheet figures that appear in the documents the lawyer marks, each with the source page. Do not state whether the debtor was insolvent and do not write a letter.
- What the lawyer must review
- 11 U.S.C. § 547(f) presumes the debtor was insolvent on and during the 90 days immediately before the petition, for the purposes of § 547. Section 548(a)(1)(B) uses insolvency on the date of the transfer or as a result of it as one condition of the reasonably-equivalent-value path, alongside the other conditions in (a)(1)(B)(ii). Section 303(h)(1) is a different test, used for an order for relief in an involuntary case: the debtor is generally not paying debts as they become due, unless those debts are the subject of a bona fide dispute as to liability or amount. No safe-harbour letter, and no statute that gives advice about continuing to trade, was opened. The lawyer writes any opinion. The Code’s definition of insolvent is for the lawyer to apply from the text. This version does not restate it.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.