A person who cannot or does not want to pay his debts can declare bankruptcy. Solvency status means that you have the ability to pay your debts. However, insolvency means that a person cannot pay their debts. To file for bankruptcy, a person must file for bankruptcy in a bankruptcy court. The voluntary bankruptcy procedure is initiated by the person declaring the bankruptcy, while the involuntary bankruptcy procedure is initiated by the creditors of the bankrupt person. A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte petition with the bankruptcy court. An insolvent debtor can file for voluntary bankruptcy. The insolvent debtor must provide the court with a summary of debts and assets. An agreement between debtor and creditor that the amount shown as owed to the creditor is accurate is a stated account. However, an open and unpaid account is a checking account. The bankruptcy court declares a person bankrupt, ...