Hong Kong Ordinances

BANKRUPTCY ORDINANCE - SECT 6A

Definition of "inability to pay", etc.; the statutory demand

(1) For the purposes of section 6(2)(c), the debtor appears to be unable to
pay a debt if, but only if, the debt is payable immediately and either-

   (a)  the petitioning creditor to whom the debt is owed has served on
the debtor a demand (known as "the statutory demand") in the prescribed form
requiring him to pay the debt or to secure or compound for it to the
satisfaction of the creditor, at least 3 weeks have elapsed since the demand
was served and the demand has been neither complied with nor set aside in
accordance with the rules; or

   (b)  execution or other process issued in respect of the debt on a judgment
        or order of any court in favour of the petitioning creditor, or one or
        more of the petitioning creditors to whom the debt is owed, has been
        returned unsatisfied in whole or in part.

(2) For the purposes of section 6(2)(c) the debtor appears to have no
reasonable prospect of being able to pay a debt if, but only if, the debt is
not immediately payable and-

   (a)  the petitioning creditor to whom it is owed has served on the
debtor a demand (also known as "the statutory demand") in the prescribed form
requiring him to establish to the satisfaction of the creditor that there is a
reasonable prospect that the debtor will be able to pay the debt when it falls
due;

   (b)  at least 3 weeks have elapsed since the demand was served; and

   (c)  the demand has been neither complied with nor set aside in accordance
        with the rules. (Added 76 of 1996 s. 4)