1. Q: Due to debt repayment, I often could not make ends meet. Could I apply for bankruptcy in this case?

A: Yes, for those who are unable to repay the debts may apply for bankruptcy with the High Court.

2. Q: Can bankruptcy payments be paid in installments?

A: No.

3.Q: Can I apply for assistance from the Legal Aid Department for bankruptcy?

A: No.

4. Q: Do the debtor need to appear in court when applying for bankruptcy?

A: Yes, but the debtor can also entrust a law firm to represent him or her in court so that it is not necessary for him or her to personally attend court.

5.  Q: Will bankruptcy affect the bankrupt’s employment in various fields?

A: A bankrupt may not be able to practice in certain professions such as working as a lawyer, an estate agent, a securities dealer or act as a director of a limited company. A bankrupt working in the banking sector is required, under the Banking Ordinance, to inform his/her employer of his/her bankruptcy. As for bankrupts working in other fields, he/she should examine his/her employment contract or other documents to check whether there are any regulations over such matter.

6.  Q: Must a bankrupt repay his/her debts? How will a bankrupt’s assets and income be treated?

A: On the whole, a bankrupt’s debts must be repaid from his/her assets and income. Therefore, upon the making of the Bankruptcy Order and throughout the bankruptcy period, a bankrupt must fully co-operate with the Provisional Trustee/Trustee in the investigation of his/her bankruptcy and the realization of assets. He/She must provide information regarding his/her assets and liabilities, financial dealings and other relevant matters. The trustee will calculate the debtor’s monthly living expenses, and under a reasonable situation, the debtor shall clear its debit on best effort basis.

7.  Q: Is a bankrupt’s family members required to repay the bankrupt’s debts?

A: No.

8. Q: What would happen if a bankrupt transferred his/her assets before bankruptcy?

A: The Provisional Trustee/Trustee will investigate how the bankrupt dealt with his/her assets before filing a bankruptcy petition. If the bankrupt attempted to transfer his/assets fraudulently, he/she may be prosecuted.

9.  Q: When will a bankrupt be discharged from bankruptcy? Is there any time limit?

A: For a bankrupt who has not previously been adjudged bankrupt and who has fully complied with the provisions under the Bankruptcy Ordinance, he will be automatically discharged from bankruptcy 4 years from the date of the Bankruptcy Order provided that there is no non-commencement order made. For a bankrupt who has previously been adjudged bankrupt, the relevant period is 5 years.

10.Q: Will the bankruptcy trustee refuse to discharge the bankruptcy order if one fails to pay off his debts after the bankruptcy?

A: No, the debtor will only have to pay the debt on best effort basis during the supervision period, and if he fails to clear all the debts after the supervision period, his outstanding debts cannot be recovered.

11. Q: Is it necessary to apply for a Certificate of Discharge after the completion of the bankruptcy supervision period?

A: No, after the bankruptcy supervision period, the debtor may decide whether to apply or not, depending on his own needs (e.g. applying for a bank account).

12.Q: Is the Certificate of Discharge issued by the High Court the same as the letter of discharge issued by the trustee?

A: No, the trustee’s letter of discharge is issued for the purpose of informing the creditors that her / his trustee’s duty has been completed, and no further account of the income and expenditure has to be submitted.

13.Q: How long does it take to apply for a Certificate of Discharge?

A: It takes about 2 months to apply for one through a law firm.

14.Q: Will the debtor’s credit score in the credit database continue to be discounted after the bankruptcy supervision period?

A: No, after the obtaining a certificate of discharge, the debtor can report to the relevant credit database, and the credit score will be re-calculated.