Procedures for Filing Petition

If a debtor wishes to present a petition for bankruptcy, he/she must satisfy the court that he/she is unable to pay his/her debts.

The debtor will be required to deposit with the Official Receiver a sum of $8,650 to cover the fees and expenses to be incurred by the Official Receiver (or trustee) and pay a court fee of $1,045 at the High Court.

The Official Receiver will not advertise a bankruptcy petition. Once a Bankruptcy Order is made, the Official Receiver will advertise the Bankruptcy Order in the Gazette and two newspapers : one Chinese and one English.

The Official Receiver has the right to do so under the legislation and may do so if necessary.

In principle, a bankrupt's debts will be met from his/her assets and income. For this purpose, a bankrupt must hand over all his/her assets, both overseas and local, to the Trustee immediately upon the granting of the Bankruptcy Order. He/She must also inform the Trustee of his/her income. The Trustee will, after taking a view of the reasonable domestic needs of the bankrupt and his/her family, distribute the balance of his/her assets and income to his/her creditors to repay his/her debts.

He/She should not unless there are reasonable grounds for doing so.

The Trustee will not usually allow the bankrupt to make payments in respect of the life insurance policy taken out.

After a bankruptcy petition has been presented to the court, the debtor should refrain from obtaining any further loans.

Yes, provided that the expenses are not met from his/her assets and income.

A bankrupt should immediately notify his/her Trustee of his/her change in name, address and telephone number (also fax number and e-mail address, if any) in Hong Kong and elsewhere. He/She should respond to the Trustee’s inquiries within a reasonable period of time.

The Trustee will realise a bankrupt's property in and outside Hong Kong. It is an offence for a bankrupt to conceal information relating to his/her property or to fail to deliver his/her property to the Trustee, and the bankrupt may be liable to be prosecuted. When the assets are vested in the Trustee, the Trustee has the power to continue to administer the assets even after the bankrupt's discharge from bankruptcy.

The Trustee will investigate all assets disposed of by the bankrupt prior to the presentation of the bankruptcy petition. It is an offence for a bankrupt to transfer any assets with a fraudulent intent, and the bankrupt may be liable to be prosecuted.

Generally speaking, the Trustee will realise the bankrupt's share in the joint property.

The provident fund of the bankrupt will be considered as part of the bankrupt's assets subject to the provisions of individual provident fund.

In general, his/her pension will cease to be payable upon the making of the Bankruptcy Order. He/She may submit an application to the Chief Executive through the Civil Service Bureau for approval of ex-gratia payments. In the event it is approved, the Trustee will assess his/her reasonable domestic needs and if there is any balance, the bankrupt will be required to repay his/her debts.

A bankrupt, who has not previously been adjudged bankrupt and conforms to the stipulations and conditions under the Bankruptcy Ordinance, will be automatically discharged four years from the date of the Bankruptcy Order provided that there is no objection to his/her discharge from the creditors and the Trustee. If he/she has been previously adjudged bankrupt, the period will be five years.

The creditors or the Trustee may object on the grounds listed out in Section 30A(4) of the Bankruptcy Ordinance which includes non-cooperation, unsatisfactory conduct, failure to prepare an annual statement of his earnings and acquisition, etc.

When a bankrupt is discharged, the discharge releases him/her from all the provable debts, but not those incurred by fraud, a fine imposed for an offence, damages in respect of personal injuries to any person, etc.