Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Causeway Bay, Hong Kong Attorneys in related practice areas.
Bankruptcy and debt law governs how individuals and businesses handle situations of insolvency, where debts become unmanageable. In Causeway Bay, as in the rest of Hong Kong, the legal framework provides structured processes for both debt recovery and the declaration of bankruptcy. Whether you are a debtor struggling with overwhelming financial obligations or a creditor seeking to recover unpaid dues, understanding the local bankruptcy and debt legal landscape is essential. These laws are designed to strike a fair balance between the interests of creditors and the rights of debtors.
Many people in Causeway Bay seek legal advice regarding bankruptcy and debt in the following situations:
A lawyer can help clients make informed decisions, protect their interests, and navigate the sometimes complicated bankruptcy procedures.
The primary legislation governing bankruptcy and debt in Causeway Bay is the Bankruptcy Ordinance (Cap. 6). This law applies across all of Hong Kong, including Causeway Bay. Here are some key aspects:
Bankruptcy is a legal process where an individual who cannot pay their debts is declared bankrupt by the court. The bankrupt’s assets are used to pay off creditors, and certain restrictions are imposed until discharge.
Both creditors and debtors can file for bankruptcy in Hong Kong. Creditors must be owed a minimum of HKD 10,000, and debtors can voluntarily petition for their own bankruptcy if they are unable to pay their debts.
Not all debts can be discharged in bankruptcy. Some obligations, such as court fines, student loans, and child support payments, are excluded. A bankruptcy lawyer can give you detailed advice based on your situation.
Most of your assets will be used to pay off your creditors. However, certain basic tools or essentials for living may be exempt. Any valuable property, real estate, vehicles, or investments may be sold by the trustee.
Generally, bankruptcy restricts you from acting as a company director, managing a business, or forming a company without the court’s permission. Business assets will form part of the bankrupt estate to repay creditors.
The standard duration is four years from the date of the bankruptcy order for first-time bankrupts, provided there are no objections to discharge and all obligations are met.
Travel restrictions apply. You must notify and get consent from the trustee or Official Receiver before leaving Hong Kong while undischarged.
An IVA is a legally binding agreement between a debtor and their creditors to repay debts over time, usually avoiding bankruptcy. It must be approved by the court and creditors holding at least 75 percent of the total value of debts.
Creditors may pursue other legal remedies such as court judgments, garnishee orders, or charging orders against property. Bankruptcy is usually considered a last resort.
Yes, it is often advisable to negotiate directly with creditors or seek alternative debt solutions like IVAs. Bankruptcy should generally be seen as a last resort due to its long-term impact on credit and assets.
If you need more information or assistance, consider these helpful resources:
If you are struggling with debt or considering bankruptcy in Causeway Bay, follow these steps:
Early legal advice can help you understand your rights, obligations, and the best path forward during difficult financial times.
