In case the bankrupt has not previously been adjudged bankrupt, the bankruptcy order will be discharged in 4 years after the date of issue as a matter principal. This is called "automatic discharge".
Condition of Automatic Discharge
- There is no valid objection from the Trustee in bankruptcy
- the bankrupt has fully complied with the provisions of the Bankruptcy Ordinance.
If the bankrupt has been previously adjudged bankrupt, the order will be discharged in 5 years after its date of issue.
If the Trustee or creditors have valid objections against the discharge of the bankruptcy order, then the order may be extended for a maximum period of 4 years. Valid objections may be due to as examples the bankrupt's unsatisfactory conduct or failure to fully disclose the assets or earnings.
In case the bankrupt has been previously adjudged bankrupt, the maximum period of the extension is 3 years.
There is also the possible suspension of the date of discharge if the bankrupt leaves Hong Kong).
Consequence of Bankruptcy Discharge
- When a bankruptcy order is discharged, the bankrupt is released from all provable debts, including any debts or liabilities that were proved in the bankruptcy proceedings.
- However, the bankrupt remains liable for the following debts regardless of the discharge of the bankruptcy order: mainly those debts incurred by fraud, fines imposed for offences, or damages in respect of personal injuries to other persons.