Hong Kong Regulations

BANKRUPTCY RULES - RULE 42

Costs out of joint and separate estates

(Past version on 30/06/1997).

(1) Where the joint estate of any co-debtors is insufficient to defray any
costs or charges properly incurred prior to the appointment of the trustee,
the Official Receiver may pay or direct the trustee to pay such costs or
charges out of the separate estates of such co-debtors, or one or more of
them, in such proportions as in his discretion the Official Receiver may think
fit. The Official Receiver may also, as in his discretion he may think fit,
pay or direct the trustee to pay any costs or charges properly incurred, prior
to the appointment of the trustee, for any separate estate out of the joint
estate or out of any other separate estate, and any part of the costs or
charges of the joint estate incurred prior to the appointment of the trustee
which affects any separate estate out of that separate estate.

(2) Where the joint estate of any co-debtors is insufficient to defray any
costs or charges properly incurred after the appointment of the trustee, the
trustee, with such consent as is hereinafter mentioned, may pay such costs or
charges out of the separate estates of such co-debtors, or one or more of
them. The trustee, with the said consent, may also pay any costs or charges
properly incurred for any separate estate, after his appointment, out of the
joint estate, and any part of the costs or charges of the joint estate
incurred after his appointment which affects any separate estate out of that
separate estate. No payment under this rule shall be made out of a separate
estate or joint estate by a trustee without the consent of the creditors'
committee of the estate out of which the payment is intended to be made, or if
such committee withhold or refuse their consent, without an order of the
court. (G.N.A. 124 of 1955; L.N. 77 of 1998) [cf. R. 121]