Applying to the court for personal bankruptcy of the debtor is one of the effective methods for debt recovery in Hong Kong. If the debtor is adjuciated bankrupt by the court, it will have serious consequences for the debtor and his property.
As an international city, many non-Hong Kong residents also own property, engage in commercial transactions or temporarily reside in Hong Kong. Can a bankcrupcy petition be taken out against a non-Hong kong resident? What is Hong Kong court’s jurisdiction in this respect?
According to Article 4 of the Hong Kong Bankruptcy Ordinance (Chapter 6 of the Laws of Hong Kong), for a personal bankruptcy petition filed by a debtor, the debtor must meet one of the following conditions:-
(a) is domiciled in Hong Kong;
(b) is personally present in Hong Kong on the day on which the petition is presented; or
(c) at any time in the period of 3 years ending with that day— (i) has been ordinarily resident, or has had a place of residence, in Hong Kong; or (ii) has carried on business in Hong Kong.
It is furthe explained that the reference above to a debtor carrying on business includes— (a) the carrying on of business by a firm or partnership of which the debtor is a member; and (b) the carrying on of business by an agent or manager for the debtor or for such a firm or partnership.
This article is only general information about the law. It is not a legal opinion on any specific case. You are welcome to consult our lawyers for any case on debt collection or the application for personal bankruptcy of the debtor in Hong Kong.