Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 12

Effect of bankruptcy order

(Past version on 01/04/1998).
(Past version on 30/06/1997).

(1) On the making of a bankruptcy order, the Official Receiver shall thereby
become the provisional trustee of the property of the bankrupt, and
thereafter, except as directed by this Ordinance, no creditor to whom the
bankrupt is indebted in respect of any debt provable  in bankruptcy shall have
any remedy against the property or person of the bankrupt in respect of the
debt, nor shall proceed with or commence any action or other legal
proceedings, unless with the leave of the court and on such terms as the court
may impose. (Amended 76 of 1996 ss. 8 and 72; 18 of 2005 s. 3)

(1A) In the case of a debtor's petition, the Official Receiver as the
provisional trustee may at any time appoint any person to act as the
provisional trustee of the property of the bankrupt in his place if he
considers that—

   (a)  the value of the property of the bankrupt is unlikely to exceed
        $200000; and

   (b)  the person has the qualifications prescribed in Schedule 3. (Added 18
        of 2005 s. 3)

(1B) The power of the Official Receiver to appoint a person as
provisional trustee includes power to appoint 2 or more persons as joint
provisional trustees; but such an appointment must make provision as to the
circumstances in which the provisional trustees must act together and the
circumstances in which one or more of them may act for the others. (Added 18
of 2005 s. 3)

(1C) The Secretary for Financial Services and the Treasury may, by notice
published in the Gazette, amend Schedule 3. (Added 18 of 2005 s. 3)

(2) This section shall not affect the power of any secured creditor to realize
or otherwise deal with his security. [cf. 1914 c. 59 s. 7 U.K.]