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 hidden assets or assets that were transferred away prior to the making of the bankruptcy order. We have undertaken a number of such investigations which have resulted in significant recoveries for creditors.