Bankruptcy (Amendment) Bill 2015

By Rosenna Mak

In a previous post in November 2015 entitled “Bankruptcy – The Unconstitutionality of the Discharge Provisions”, we referred to a draft Bankruptcy (Amendment) Bill 2015 being put before LegCo for the purpose of addressing the CFA’s ruling on the unconstitutionality of certain of the existing discharge provisions.  On 17 March 2016, LegCo passed the Bankruptcy (Amendment) Bill 2015 (“Bill”).  The Bill targets those bankrupts who do not cooperate with their trustee or who abscond from Hong Kong.  However, it is not retrospective and will only be applicable to those against whom a bankruptcy order is made on or after 1 November 2016.

Under the new Bill, a bankrupt is required to attend an initial interview with the trustee and provide the trustee with sufficient information regarding his/her property and affairs to enable the trustee to properly investigate his/her affairs.  The Bill provides for the trustee to apply to the Court for a non-commencement order if a bankrupt fails to comply with these obligations.  If a non-commencement order is made, the bankruptcy period will not start to run until the bankrupt has cooperated with his trustee, who can then report to the Court accordingly.

 

Briscoe Wong Advisory