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Bankruptcy law in Happy Valley, Hong Kong operates under Hong Kong’s Bankruptcy Ordinance. When someone is unable to repay their debts and allows this status to be declared publicly, they are considered 'bankrupt'. This process eliminates most of the debts and gives the debtor a fresh financial start. It also reorganizes the debt to be managed more comfortably. The rules can be complex and should be approached with professional legal assistance.
Engaging a lawyer is advisable for several reasons. First, bankruptcy law can be complicated, and comprehensive knowledge of Bankruptcy Ordinance and relevant statutes is essential. Second, completing and filing forms correctly also requires legal expertise to avoid mistakes or omissions which could result in case dismissal, delay, or even penalties. Last, a lawyer can help protect your rights and ensure all possible debt discharge is achieved.
The key features of the Hong Kong Bankruptcy Ordinance involve the automatic discharge of bankruptcy after four years for first-time bankruptcy. For repeated bankruptcy, it's five years. There is no minimum amount of debt for filing bankruptcy, but the bankruptcy cannot be withdrawn once the petition is filed. All assets, including those acquired during the bankruptcy period, can be claimed to pay off the debts.
No, the law does not permit selection among creditors. All creditors must be treated equally.
Bankruptcy will obviously affect your credit score in the short term, it will remain on your credit history for a while. However, you are allowed to rebuild your credit post-bankruptcy.
No, debts like child support, alimony payments, student loans, criminal fines, and some tax debts are generally not dischargeable.
Once bankruptcy is filed, an 'automatic stay' is generally put in place which stops most collection attempts, including calls, letters, lawsuits, garnishments, repossessions, or foreclosure proceedings.
The Official Receiver or Trustee has the right to sell your tangible assets to repay your creditors. However, some necessary household items and tools necessary for your work may be exempt.
The Official Receiver’s Office (ORO) provides materials on bankruptcy and insolvency-related matters. You may also seek free legal advice from organizations such as the Duty Lawyer Service and the Hong Kong Legal Service Department.
If you are facing severe financial distress, consult a bankruptcy lawyer to understand your options and the repercussions. Remember, bankruptcy filing is a serious matter with long-term legal and financial consequences, and thus, should be considered only as a last resort.
