About Bankruptcy Law in Central, Hong Kong
Bankruptcy law in Central, Hong Kong is designed to provide financial relief to individuals and businesses unable to meet their debt obligations. The bankruptcy process involves a legal declaration of inability to pay creditors. It often results in the disposal of the debtor's assets by a trustee to repay creditors. The debtor will be discharged from bankruptcy upon meeting certain requirements.
Why You May Need a Lawyer
A lawyer can be essential when facing the complication of bankruptcy. They can help interpret the law, prepare necessary documents, represent you in court, and communicate with creditors on your behalf. In situations such as large amounts of debt, negotiating with creditors, or even shielding assets from a claim, legal expertise becomes crucial.
Local Laws Overview
Bankruptcy in Hong Kong is governed by the Bankruptcy Ordinance (Cap 6). A person can be declared bankrupt if they owe HKD 10000 or more and cannot repay. Following the declaration, the debtor's assets are managed by a trustee appointed by the Official Receiver's Office (ORO), which can be an Official Receiver or a private sector insolvency practitioner. After four years for a first-time bankrupt, or five years for subsequent bankruptcies, and upon meeting certain conditions, the debtor receives an automatic discharge from bankruptcy.
Frequently Asked Questions
What happens when I am declared bankrupt?
Once you are declared bankrupt, a bankruptcy trustee will take control of most of your assets and deal with your creditors. You can't be a director of a company or manage a company without the court's permission.
Can All Debts Be Discharged In Bankruptcy?
Not all debts are discharged even after bankruptcy. These may include student loans, child support, court fines, or monies owed as a result of fraud.
Will I Lose All My Assets If I Go Bankrupt?
Not necessarily. Necessities such as clothing, household goods, and tools for trade are often exempted from the assets dealing of bankruptcy.
Can I Keep Any Earnings If I Am Bankrupt?
Yes, you can keep any earnings, but income contributions may be required if your income exceeds a certain amount set by the ORO.
What Happens After Discharge From Bankruptcy?
Upon discharge, you are released from most of the debts that were included in your bankruptcy. However, this does not remove the record of the bankruptcy from your credit report.
Additional Resources
The Official Receiver’s Office (ORO) and the Hong Kong Judiciary website provide guidelines in bankruptcy matters. Additionally, the Duty Lawyer Service offers free legal advice for individuals facing bankruptcy proceedings, while insolvency practitioners can offer assistance in asset management.
Next Steps
If you need legal assistance in bankruptcy, it is advisable to find an experienced bankruptcy lawyer or a reputable insolvency practitioner. Prepare all financial records and divulge your financial situation fully to your advisors. Always attend court proceedings and abide by legal obligations during the bankruptcy process.
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