A person who cannot or does not want to pay their debts can declare bankruptcy. Solvency means that one has the ability to pay one's debts. However, insolvency means that a person cannot pay their debts. In order to file for bankruptcy, a person must file a bankruptcy petition with a bankruptcy court. A voluntary bankruptcy proceeding is initiated by the person filing for bankruptcy, while an involuntary bankruptcy proceeding is initiated by the bankrupt's creditors. A creditor who is not a party to the bankruptcy proceeding, but who has an interest in the proceeding, 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 his debts and assets. An agreement between a debtor and a creditor that the amount stated to be owed to the creditor is correct is a stated account. However, an open and unsettled account is a current account. The bankruptcy court declares a person bankrupt., ...