BANKRUPTCY LAW IS A FEDERAL REGULATION. The Official Receiver becomes the Provisional Trustee upon the making of the Chapter Order. In Chapter 7, a debtor surrenders non-exempt property to a bankruptcy trustee, who then liquidates the property and distributes the proceeds to the debtor’s unsecured collectors.
Solely a fraction of closely indebted households file for insolvency. Chapter is a legal life line for folks drowning in debt. Nevertheless, servants of the debtor could be retained past that deadline by the creditor and were usually forced to serve their new lord for a lifetime, normally underneath considerably harsher situations.
For circumstances with Chapter Orders made before 1 November 2016, pursuant to part 30A(10)(b)(ii) of the Bankruptcy Ordinance, after the making of the Bankruptcy Order, if a bankrupt fails to return to Hong Kong on a date or inside a interval specified by the Trustee, the related interval of chapter shall not proceed to run through the period he is absent from Hong Kong and until he notifies the Trustee of his return.
The aim is to overcome the enterprise crisis situation of the debtor in an effort to enable the continuation of the producer, the employment of workers and the interests of collectors, leading, thus, to preserving firm, its corporate operate and develop economic exercise.