Yes, a debtor can file for bankruptcy and insolvency voluntarily in many jurisdictions, including India. Voluntary initiation of insolvency proceedings by the debtor is often referred to as a "voluntary bankruptcy" or "voluntary insolvency." In this scenario, the debtor recognizes its financial distress and chooses to initiate the bankruptcy or insolvency process on its own accord. Here's how it typically works: Eligibility: The debtor must meet the eligibility criteria defined by the relevant insolvency laws. In India, for example, a corporate debtor (a company) or an individual (in cases of personal insolvency) can initiate voluntary insolvency proceedings if they meet the eligibility requirements under the Insolvency and Bankruptcy Code, 2016. Application to the Adjudicating Authority: In India, the debtor, or its authorized representative, can file an application with the National Company Law Tribunal (NCLT) for initiating the insolvency process. The application must provide details of the financial situation, debts owed, and the reasons for seeking insolvency. Moratorium: Once the application is accepted by the NCLT, a moratorium period typically comes into effect. During this period, creditors are prevented from initiating or continuing legal actions, including debt recovery efforts, against the debtor. Appointment of Insolvency Professional: An insolvency professional (IP) or resolution professional (RP) is appointed to manage the debtor's affairs during the insolvency process. The IP/RP takes control of the debtor's assets and operations. Resolution Process or Liquidation: Depending on the circumstances and the debtor's viability, the insolvency process may lead to the formulation of a resolution plan if the debtor intends to continue operating and restructuring its debts. If a resolution plan is not feasible, the process may result in the liquidation of the debtor's assets to repay creditors. Creditor Claims: Creditors are required to submit their claims to the IP/RP for verification. The distribution of assets to creditors is typically carried out in accordance with the priority set by the insolvency laws. Monitoring by the NCLT: The NCLT oversees the insolvency process, including the approval of any resolution plans and the distribution of assets to creditors. Voluntary bankruptcy or insolvency allows debtors to take control of their financial distress and work toward a resolution that may involve restructuring and debt repayment, rather than waiting for creditors to initiate involuntary proceedings. It can also provide a structured and legal framework for dealing with financial difficulties while protecting the interests of both debtors and creditors. However, the specific procedures and requirements may vary from one jurisdiction to another, so it's essential to consult with legal professionals well-versed in the relevant insolvency laws.