A bankrupt person is the one who is unable to pay his debts. However, you can file an insolvency petition only if your liabilities exceed your assets, making it impossible for you to pay the debt. Hence, this option is not open to all the people who are in debt.If a petition is filed on flimsy grounds or you are unable to prove that you cannot pay the debt, your petition will be dismissed. Besides, you can file for bankruptcy if you have been arrested as per a court order or your property has been attached. You are eligible to file for insolvency even if you have not been arrested or the property has not been attached, but the debt amount should exceed `500.