Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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7. Can Miss M avoid bankruptcy proceedings against her during the effective period of the IVA proposal?

Miss M can avoid bankruptcy proceedings if she complies with her obligations under the IVA.

Under section 20L of the Bankruptcy Ordinance, however, the Court can still make a bankruptcy order against the debtor if:

  • the debtor has failed to comply with the relevant obligations under the IVA; or
  • the debtor provided false or misleading information or omitted items that were important for considering and approving the IVA proposal; or
  • the debtor failed to do all such things for the purpose of the IVA that have been reasonably required by the Nominee of the voluntary arrangement.
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