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Hong Kong Legal Information · Chapter 6 of the Bankruptcy Ordinance

What you need to know before filing for bankruptcy

When debt is overwhelming, bankruptcy may be one of the solutions, but it involves assets, income, housing, employment and even credit history, and the impact often lasts for years. It is recommended to clarify the procedures and consequences first, and before making any decision, consult a practicing lawyer or bankruptcy-related professional to assess whether it is appropriate based on individual circumstances.

Overview of Hong Kong’s bankruptcy legal proceedings and impact on life

How will your life change after the court order?

The following are the provisions under the Bankruptcy Ordinance and related legislation:More commonThe actual arrangement depends on the individual case, trustee and court decisions and cannot be generalized.

Assets are managed by trustees

Articles 12 and 58 of the Bankruptcy Ordinance (Summary)

After a bankruptcy order is made, assets falling into the "non-exempt" category (such as properties, vehicles, deposits and certain investments) will usually have to be handed over to the Official Receiver or an appointed trustee for the purpose of liquidation and repayment to creditors.

Never hide assets.The trustee enjoys broad powers in accordance with the law (such as takeover in Article 53; search in Article 54, etc.), and violations may bring serious legal consequences.

Income may be amortized as ordered

Section 43E of the Bankruptcy Ordinance (Summary)

The court or trustee can issue an "income payment order", requiring that part of your income (including salary, commissions or business profits, etc.) be transferred to the bankruptcy estate to fulfill the repayment obligation.

The legislation will also take into accountReasonable living needs, retain basic spending space within feasible scope.

Housing and daily consumption are subject to restrictions

Section 43F of the Bankruptcy Ordinance (Summary)

address:Generally, you can continue to live in your original residence for the first six months after the order is issued, and you may have to move out after the expiration. If there are special circumstances, you can apply to the court for an extension.

Consumption pattern:The principles of prudence and necessity must be followed; obviously unnecessary luxury or high consumption may be questioned as improper use of assets.

Positions such as company directors are restricted

Section 480 of the Companies Ordinance (Summary)

in bankruptcyNot releasedDuring this period, you are generally not allowed to serve as a company director or participate in the management of certain companies. Violating relevant regulations or constituting a criminal offense (such as penalties stipulated in laws; the actual provisions in effect at the time shall prevail).

Credit and banking services may be hampered

Credit Information and Institutional Internal Policies

Bankruptcy records will be reflected in credit files; during the bankruptcy period and even for a period of time afterwards, it may be more difficult to apply for credit cards, loans, or open new accounts, and the approval conditions may also be stricter.

Three points must be kept in mind

  • Length of bankruptcy period:Four years are often used as a reference for the first bankruptcy, and for the second time or longer; if there is a lack of cooperation or ethics issues, the court may extend the period in accordance with Section 30A.
  • Discharge from bankruptcy does not mean that all debts disappear:For example, some fines, debts caused by fraud, etc. may still have to be dealt with after the discharge (refer to Article 32).
  • Frank and professional support:Proactive disclosure, cooperation with trustees, and early seeking of legal advice can often help reduce misunderstandings and additional risks.

This page is a compilation of general legal information, aiming to help the public establish a preliminary understanding.does not constitute legal advice. Legislation and government fees are revised from time to time. Please refer to the latest official announcements from the Official Receiver's Office, the Judiciary, etc.; please consult a qualified professional for individual circumstances.

Will the family continue to pay off the debt?

bankruptcy withpersonal responsibilityis the principle, but joint loans, guarantees or shared assets can change the situation.

spouse

If you file for bankruptcy solely because of debts owed in your own name, your spouse usuallyNot automaticallyBecome a repayer. However, if the other party has guaranteed you or jointly borrowed money with you, you may still be held liable. Joint properties may also be included in the bankruptcy estate process, so it is advisable to clarify the ownership and mortgage terms as soon as possible.

Parents, children and other relatives

Without joint debts or guarantees, family members generallyno legal obligationRepay personal debts on your behalf. In practice, reasonable living expenses will be deducted from the income payment arrangement first to protect the basic living expenses of you and your dependents. Facing debt properly can also help reduce stress and disputes within the family.

何谓破产？ What are the steps to apply?

简单而言，破产是由法庭宣告的法律状态，让无力偿债的人士在制度下统一处理债务与资产。 The following is when the debtor petitions on his own initiative:Process outline(Please refer to the official forms and guidelines for practical details).

Four steps of petition (overview)

  1. Prepare and submit petitions and finances

    Submit the "Debtor's Bankruptcy Petition" and "Statement of Assets and Liabilities" to the Official Receiver to start the personal bankruptcy petition process.

  2. Complete the testimony and oath

    In accordance with legal requirements, witness and swear oaths for the above documents to confirm the authenticity of the contents.

  3. Pay and schedule court fees

    Pay the fee in person at the High Court Registry and follow up on the hearing date and document submission arrangements.

  4. Submit copy to Director

    Submit two sealed copies of the petition and two copies of the assets and liabilities to the Official Receiver as required.

Reference fee (subject to adjustment)

Official Receiver/Trustee Related Fees and Expenses HK$8,000
court costs HK$1,045

The above amounts are common reference levels, and the actual amount is subject to the day of payment and the official announcement.

How long does it take from submission to hearing?

Hearing dates are scheduled by the court registry. Generally speaking, in recent years, it may take time from submission of application to the first hearing.about a month, the actual waiting time depends on the court workload and the complexity of the case.

Want to clarify your direction first before deciding on the next step?

Hengcheng Firm is happy to communicate with you initially and sort out the options that can be considered. When it comes to bankruptcy petitions, defenses or complex asset arrangements, we will also recommend that you seek independent advice from qualified lawyers or specialist consultants.