Legal service on bankruptcy

We file more than 100 bankruptcies a month and over a thousand a year

We file over 100 bankruptcy petitions for our debt clients every month. Every year, thousands of debtors hard hit by credit card debts and personal loans instruct us to file bankruptcies for them.  Picture: 3 of our lawyers experienced in debt problems, Raymond Tang, Matthew Tse and Pierre Sun.

Welcome to HongKongBankruptcy.com, an English website dedicated to basic bankruptcy information. If you are in heavy debts and stressed by credit card or personal loans, you may consider bankruptcy  (破產) or debt relief plan (DRP債務舒緩重組)  to solve your debt problems.

We have handled more than 10,000 bankruptcy applications and more than 2000 debt restructuring plans since 2011. WE ARE EXPERIENCED & CAN BE TRUSTED BY YOU! WE ARE LEADING IN PERSONAL INSOLVENCY LEGAL PRACTICE.

Bankruptcy Chinese site: www.HKBankruptcy.com

 For self-bankruptcy petition, the following is an estimate on legal costs and expenses on applying for bankruptcy:

• inform Trustee/Official Receiver when staying out of Hong Kong
• file financial statement with Trustee/Official Receiver every 12 months
• bankruptcy period is basically 4 years. A bankrupt is "supervised" by Trustee/Official Receiver for 4 years
• income in excess of basic living expenses be given to Trustee/Official Receiver for distribution in the estate
• give full account of financial position to Trustee/Official Receiver, including "transactions undervalue" and "unfair preference" made prior to bankruptcy

• must inform the lender his bankrupt identity when borrowing a sum over $100
• bad credit rating even after bankrupt discharge
• cannot live in extravagance during bankruptcy period
• must pay to the estate's Trustee the money in excess of the living expenses
• some professional qualifications have to be suspended from practice
• not permitted to travel for vacation on own money
• life policy cash value be surrendered to the estate to become asset for paying to creditors
• giving to the Trustee/Official Receiver a good account of the financial position before bankrupt
• explain to the Trustee/Official Receiver  "unfair preference", if any
• explain to the Trustee/Official Receiver  "transactions undervalue or gifts" made prior to bankruptcy

• need not repay bank or loan creditors if income is below living expenses
• living expenses may include maintenance to dependants such as parents and children
• face no debt litigations
• debt collectors cease to chase your debts
• automatic discharge from bankruptcy after 4 years if well behave
• bank debts and loans written off after 4 years when bankruptcy order is discharged

Anyone may conduct a bankruptcy search on a target person through the Official Receiver’s Office via the Internet at http://www.oro.gov.hk/eng/publicsv/compulsory.htm.

Search Conditions

• name and ID number of the target person or the trading name of a non-limited company
• pay a search fee of $85 for each search. 
• the bankruptcy search will show all bankruptcy orders (both undischarged and discharged) on the target person.

First-time Bankrupt

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. 

Non-First-time Bankrupt

If the bankrupt has been previously adjudged bankrupt, the order will be discharged in 5 years after its date of issue.

Valid Objections

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.

• Partner 
• Solicitor Hong Kong
• Member, Law Society of Hong Kong 

Capabilities:

• Handled extensively on bankruptcy & debt restructuring matters for personal debtors
• Acting for vendors and purchasers in conveyancing transactions including raising and answering requisitions and comprehensive study of title deeds. 
• Extensive handling of family law cases including drafting of pleadings and obtaining Divorce Order Nisi and Order Absolute. 
• Extensive handling of probate cases including drafting of wills and obtaining letters of administration for clients. 
• Conducted legal research and client interviews

Case Illustration

 Miss B is a saleslady having a regular salary of $12000 per month. She likes travel for vacations. She does this 3 times a year. She has borrowed  about $250,000 in total from different banks and finance companies. Credit card debts and personal loans are almost half and half. Her repayment in total every month is about $8000. Her basic living expenses in a month is $8000.  Because $8000 is her basic spending, she is now unable to repay all her creditors.

Question 1: 
Can any one of the creditors file a bankruptcy petition against Miss B at this stage? 

Question 2: 
If a bankruptcy order is granted against Miss B, then what will happen to Miss B? Answer 5

Question 3: 
What are the effects of bankruptcy on Miss B's job?

Question 4: 
If Miss B gives his car to his brother as a gift, then what possible legal action will he face? 

Question 5: 
What can a creditor do after a bankruptcy order has been granted against Miss B?

Question 6: 
When will Miss B be discharged from his bankruptcy order? 

Question 7: 
Can Miss B apply for an early discharge of the bankruptcy order even if its effective period has not expired?  

This is one of the shortcomings in bankruptcy and all bankrupts intending to go bankrupt must take note of this law.

1. Subject to this section and sections 51 and 51A, where a debtor is adjudged bankrupt and he has at a relevant time (defined in section 51) given an unfair preference to any person, the trustee may apply to the court for an order under this section.
2. The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that debtor had not given that unfair preference.
3. For the purposes of this section and sections 51 and 51A, a debtor gives an unfair preference to a person if-
   1. that person is one of the debtor's creditors or a surety or guarantor for any of his debts or other liabilities; and
   2. the debtor does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the debtor's bankruptcy, will be better than the position he would have been in if that thing had not been done.
4. The court shall not make an order under this section in respect of an unfair preference given to any person unless the debtor who gave the unfair preference was influenced in deciding to give it by a desire to produce in relation to that person the effect mentioned in subsection (3)(b).
5. A debtor who has given an unfair preference to a person who, at the time the unfair preference was given, was an associate of his (otherwise than by reason only of being his employee) is presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in subsection (4).
6. The fact that something has been done in pursuance of the order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of an unfair preference.

In Hong Kong, a creditor can petition for bankruptcy against a debtor. However, a debtor stressed by his personal debts, may also make a self-bankruptcy to declare himself bankrupt. The proceedings are in High Court. For a debtor's self-bankruptcy, the petitioner has to pay $1045 as court fee to the Court and $8650 to the Official Receiver as deposit. A petition has to pay his lawyers as legal fee if he seeks to be acted by a lawyer. For total budget, see Costs & Expenses in bankruptcy.

Ground of self-petition

A person who is unable to pay his debts, regardless of the amount, may present a bankruptcy petition. A sworn statement of affairs must be submitted with the petition.

Case No. & Legal representation

The Court will assign a case number with the prefix HCB (meaning a High Court bankruptcy action) on issue of a petition. Unrepresented debtors have to attend the petition in court personally. Debtors represented by lawyers need not appear in Court. 

1. Subject to this section and sections 51 and 51A, where a debtor is adjudged bankrupt and he has at a relevant time (defined in section 51) entered into a transaction with any person at an undervalue, the trustee may apply to the court for an order under this section.
2.  The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that debtor had not entered into that transaction.
3. For the purposes of this section and sections 51 and 51A, a debtor enters into a transaction with a person at an undervalue if-

• he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration;
• he enters into a transaction with that person in consideration of marriage; or
• he enters into a transaction with that person for a consideration the value of which, in money or money's worth, is significantly less than the value, in money or money's worth, of the consideration provided by the debtor.

Start Conversation with Our Lawyer
Ricky Wan phone ／whatsapp 68896880

Office:
Address ： 2/F., CNT House, 120 Johnston Road, Wan Chai, Hong Kong

Other offices

Mr. Ricky Wan - Partner at Yip Tse & Tang

Contact Information:

• Mobile Enquiry or WhatsApp: 68896880

Professional Summary: Mr. Ricky Wan is a distinguished Partner at Yip Tse & Tang, bringing a wealth of experience and expertise to the firm's bankruptcy and debt relief practice. Known for his strategic approach and compassionate client service, Mr. Wan has a proven track record of successfully guiding individuals and businesses through financial challenges, helping them achieve stability and relief.

Major Capabilities:

1. Bankruptcy:

   • Comprehensive Bankruptcy Solutions: Mr. Wan specializes in providing tailored bankruptcy solutions that best fit the unique circumstances of each client.
   • Asset Protection: He has extensive experience in protecting clients’ assets while navigating the complexities of bankruptcy laws.
   • Debt Discharge: Mr. Wan is adept at securing discharge of debts, allowing clients a fresh start and the ability to rebuild their financial lives.
   • Legal Representation: He offers robust legal representation in bankruptcy court, ensuring that clients’ rights are protected throughout the process.

2. Debt Relief Plan:

   • Customized Debt Relief Strategies: Mr. Wan develops personalized debt relief plans that address the specific needs and financial situations of clients, including debt negotiation and settlement.
   • Credit Counseling: He provides expert credit counseling services to help clients understand their financial situation and explore all available debt relief options.
   • Debt Consolidation: Mr. Wan assists clients in consolidating their debts into manageable payments, reducing financial stress and avoiding the pitfalls of multiple creditor pressures.
   • Financial Rehabilitation: He offers guidance on financial rehabilitation post-debt relief, ensuring clients can rebuild their credit and achieve long-term financial health.

Why Choose Mr. Ricky Wan:

1. Extensive Experience: With years of experience in bankruptcy and debt relief, Mr. Wan has honed his skills in navigating the most complex financial predicaments, ensuring successful outcomes for his clients.

2. Client-Centered Approach: Mr. Wan is dedicated to understanding the unique needs of each client, offering personalized solutions that are both practical and effective. His empathetic approach ensures clients feel supported and confident throughout the process.

3. Proven Success: Mr. Wan’s track record speaks for itself, with numerous clients having achieved significant debt relief and financial stability under his guidance. His strategic planning and meticulous attention to detail have resulted in successful resolutions for a wide range of cases.

4. Strong Legal Advocacy: As a partner at Yip Tse & Tang Mr. Wan is committed to providing top-notch legal representation. His strong advocacy skills in court and negotiations ensure that clients’ interests are always at the forefront.

5. Accessible and Responsive: Mr. Wan understands the urgency and stress associated with financial difficulties. He is readily available for consultations and support through mobile enquiry or WhatsApp, ensuring clients receive timely and effective assistance.

Contact Mr. Ricky Wan Today: For expert guidance on bankruptcy and debt relief, reach out to Mr. Ricky Wan via mobile enquiry or WhatsApp at 68896880. Trust in his expertise to help you navigate your financial challenges and achieve a brighter, more stable future.

Yip, Tse & Tang is a leading firm in bankruptcy practice in Hong Kong. Since year 2001, we have been helping debtors  under stress of credit card debts and personal loans to relieve them from debt pressure either by self-bankruptcy or debt restructuring.

If you do not wish to go bankrupt, you may consult us on other alternatives. One alternative is known as "Debt Relief Plan", shortly called DRP. We may negotiate for you with bank and finance companies for a restructuring of your debts. This may help to reduce the loan interest and lengthen the loan repayment period.

In the period of bankruptcy, a bankrupt may use his personal income or salary for his living and his dependants' living. This is to satisfy the bankrupt's domestic needs. Excess will be paid to Trustee/Official Receiver to handle.

• Established: since 1994 
• Current no. of lawyers: 38. 
• Notaries Public: 4
• Civil Celebrants of Marriages: 20 
• China-appointed Attesting Officer:3
• Total no. of staff: about 100 
• Total no. of bankruptcies handled: more than 10000 
• Total no. of individual debt restructuring: more than 1200 
• Law Offices: 13 offices in Hong Kong Island, Kowloon and NT. 
• Corporate Social Responsibility awards: 5-Year Plus Logo Caring Company Award by Hong Kong Council of Social Services AND Outstanding Partnership Award: Wise Financial Planning and Debt Counselling Project with Caritas Hong Kong 
• Corporate web-site : www.ytt.biz

CNT HOUSE, WANCHAI, HONG KONG
Address : 2/F., CNT House, 120 Johnston Road, Wan Chai, Hong Kong

GRAND TOWER, MONGKOK, KOWLOON
Room 2118, 21/F, One Grand Tower, 639 Nathan Road, Mongkok, Kowloon

CHUNG KIU COMMERCIAL BUILDING, MONGKOK, KOWLOON
Room 1805, 18/F, Chung Kiu Commercial Building, 47-51 Shan Tung Street, Mong Kok, Kowloon

KWUN TONG, KOWLOON
Unit F, 21/F, Legend Tower, 7 Shing Yip Street, Kwun Tong, Kowloon

SAN PO KONG, KOWLOON
Unit H, 12/F, Maxgrand Plaza, 3 Tai Yau Street, San Po Kong, Kowloon

LAI CHI KOK MTR KOWLOON
Room 813-4, 8/F, Tower 1, Cheung Sha Wan Plaza, 833 Cheung Sha Wan Road, Kowloon

TAI PO, N.T.
Shop 74, 1/F Fortune Plaza Shopping Centre, 4 On Chee Road, Tai Po, N.T.

SHATIN
Unit 1517-18, Level 15, Tower II, Grand Central Plaza, 138 Shatin Rurul Committee Road, Shatin, N.T.

TSUEN WAN, N.T.
Room 2301A-6B & 7A, 23/F, Nan Fung Centre, 264-298 Castle Peak Road, Tsuen Wan, N.T.

YUEN LONG, N.T.
Room 701, HSBC Building Yuen Long, 150-160 Castle Peak Road, Yuen Long, N.T.

SHEUNG SHUI, N.T.
Room 1116-7, 11/F, Landmark North, 39 Lung Sum Road, Sheung Shui, N.T.

TUEN MUN, N.T.
Room 2301, 23/F, Tuen Mun Parklane Square, 2 Tuen Hi Road, Tuen Mun, N.T.