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There is no insolvency requirement to seek bankruptcy protection, but a case can be dismissed if filed in bad faith.
Individuals cannot discharge certain debts, including those incurred through fraud or willful and malicious injury.
Chief
Bk judges are pretty sophisticated. We have an entirely separate court system for these types of cases. They see this type of creative accounting from debtors all the time. They see right through it.
Pro
I came across a similar ploy once. The end result was a referral of the responsible attorney to the ethics committee after we got the judge to unwind the fraudulent scheme. Definitely don't try this. The attorney got in trouble for representing both parties in the same lawsuit. He thought he would be sneaky by hiring another firm to appear for the creditor, but the correspondence between him and that firm eventually came out.