Bankruptcy is a serious decision, so it should be carefully considered before making a decision. Here are some consequences to consider:
- Professional status and employment: Bankruptcy may have an impact on your status and professional status. In certain professions, such as solicitors, estate agents, securities dealers or directors of a limited company, they may not be able to continue to practise. If you work in the banking industry, you will need to inform your employer about your bankruptcy.
- Property delivery: After bankruptcy, all of your property will be given to a trustee to be used to pay off creditors’ debts. This includes all assets you own both overseas and locally. You need to hand over all your assets to the trustee immediately.
- Income assessment: You will need to inform the trustee of your income so that the assessment can be made. This is to determine how much you need to pay to the creditor.
- Property share sale: The entire property you own or half of the property will be vested in the trustee. The trustee may sell your share of the property during bankruptcy or after discharge.
- Family home is not exempt: Under bankruptcy law, your family home is usually not exempt and may need to be sold or otherwise disposed of.
- Pension impact: Your pension may be affected. The trustee may claim the money you paid out of your MPF accrued benefits during bankruptcy.
- Property restitution: Once you are discharged from bankruptcy, your property will not be returned to you. Property vested in the trustee will continue to vest in the trustee until all assets are distributed to creditors and the trustee is discharged.
- Voluntary discharge: Cooperation with the trustee is the key to voluntary discharge. A person who is a first-time bankrupt or has been bankrupt after 4 or 5 years from the date of the bankruptcy order, provided that he or she is automatically discharged from bankruptcy if he or she attends the initial meeting in person, provides all relevant information to the trustee, cooperates fully with the trustee and has no objection from creditors or the trustee.
Bankruptcy will have a profound impact on your life and finances, so it is advisable to consult with a professional, such as a lawyer or financial advisor, to get proper advice and understand all options before making a decision.
Official Receiver’s Office https://www.oro.gov.hk/
