Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency.
We have acted as Trustee in Bankruptcy for a number of individuals in Hong Kong. Our role is to realise the debtor’s assets and distribute them to the creditors in accordance with their priorities. However, more importantly, we are often appointed to undertake a thorough investigation of the debtor’s affairs with the aim of uncovering previously undisclosed assets. We have undertaken a number of such investigations which have resulted in significant recoveries for creditors.
An IVA is an alternative to bankruptcy which should provide a greater benefit to creditors than would bankruptcy. We have been involved in a number of IVAs and are experienced in structuring an IVA, to meet both the needs of creditors and at the same time ensure it is achievable by the debtor.