Bankruptcy In Hong Kong
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Introduction
In American bankruptcy law allows people to avoid paying their debts, by offering the debtors a discharge, which eliminates all their legal responsibilities. It is, however, similar with Hong Kong Bankruptcy Ordinance but differ in varies ways. The Bankruptcy Ordinance in Hong Kong offers a legal framework to enable a creditor to file a bankruptcy petition with the Court against an individual, or a firm who owes him/her money. In addition, a debtor who is unable to repay his/her debts can also file a bankruptcy petition against himself/herself with the Court. Although, one can eliminates all the legal responsibilities once the bankruptcy petition is filed with the discharge prevision, one still have to repay the debt to certain degree and required to working for the banking sector for four years. The main objectives of the bankruptcy legislation in Hong Kong are 1) to collect and realize all the bankrupt's assets and distribute them amongst his/her creditors, and 2) to investigate the causes of the bankruptcy and to penalize the bankrupt if any breach of the bankruptcy provisions is involved.
Procedures for Filing Petition in Hong Kong
It is required for creditor's to complete a creditor's bankruptcy petition on form 10, 10A or 10B of Bankruptcy rules and have the petition attested and verified by affidavit. As affidavit verified the petition, creditor must prepare an affidavit proving service of the Statutory Demand and then register at High Court to obtain a date for the hearing of the petition. Finally, creditor will deliver a sealed copy of the petition to the debtor and submit a copy of all documents filed to the High Court in connection with the bankruptcy proceedings to the Official Receiver.
Debtors, on the other hand, will have to complete a Debtor's bankruptcy petition on form 3 of bankruptcy rules and a statement of affairs on form 28C of bankruptcy rules...