Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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C. Case Illustration


Mr. T is a Hong Kong merchant who frequently travels to mainland China. He borrowed $300,000 from ABC Bank, repayable by monthly instalments. He fails to make any repayment to the bank for six months despite verbal and written demands from the bank. The bank wishes to file a bankruptcy petition against Mr. T.

  1. Can ABC Bank file a bankruptcy petition against Mr. T at this stage?
  2. What can ABC Bank do if the statutory demand fails to reach Mr. T, or if Mr. T tries to avoid receiving the demand?
  3. Apart from validly serving the statutory demand on Mr. T, what other conditions must be satisfied before ABC Bank can file a bankruptcy petition?
  4. During the court hearing for the bankruptcy petition, Mr. T said that he had spent a long period in mainland China and had not received the statutory demand. He only received the bankruptcy petition two days before the hearing. Can he ask the Court to suspend or dismiss the bankruptcy proceedings?
  5. If a bankruptcy order is granted against Mr. T, then what will happen to Mr. T?
  6. What are the effects of bankruptcy on Mr. T's job?
  7. If Mr. T absconds to China and takes $10,000 in cash, then what possible legal action will he face?
  8. If Mr. T gives his car to his brother as a gift, then what possible legal action will he face?
  9. What can ABC Bank do after a bankruptcy order has been granted against Mr. T?
  10. When will Mr. T be discharged from his bankruptcy order?
  11. Can Mr. T apply for an early discharge of the bankruptcy order even if its effective period has not expired?