BANKRUPTCY LAW IS A FEDERAL LAW. If that is not doable, the Trustee might search to extend the bankruptcy for a further 5 years. That legislation was meant to stem the tide of consumers and businesses too keen to easily walk away from their debts. A creditor or the corporate itself can apply for chapter.
29 Creditors can declare money by way of the Enforcement Administration anyway, and creditors don’t often benefit from the chapter of individuals because there are costs of a chapter manager which has precedence. Submitting bankruptcy with a court is the first step.
Typically referred to as “straight bankruptcy” or “easy bankruptcy,” a Chapter 7 chapter potentially allows debtors to eliminate most or all of their money owed over a interval of as little as three or four months. It might prevent or delay foreclosure on a house and repossession of a automotive and it will probably also stop wage garnishment and other authorized actions creditors use to gather debts, however in the end, there is a worth to pay.
Any particular person towards whom a chapter order is made shall be guilty of an offence if he conceals or absents himself from his usual or final known place of abode or business or quits Hong Kong, with intent to keep away from service of any process in bankruptcy or to keep away from examination in respect of his affairs or otherwise to defeat, embarrass or delay any proceedings in opposition to him in bankruptcy.