Insolvency proceedings may be opened only after a petition has been filed. They are opened on the date on which the insolvency petition reaches a court with due jurisdiction in the case. Insolvency petitions may be filed by debtors or their creditors, except in cases of impending bankruptcy, when they may be filed only by the debtor.
Debtors who are businesses (whether an individual or a legal entity) are required to file an insolvency petition without undue delay after they learn or, with proper care, should have learned of their bankruptcy.
Insolvency proceedings cannot be brought against the state, local government units, political parties and movements during elections, and other selected entities of a predominantly public nature. Special rules apply to financial institutions and insurance companies.