Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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7. If Mr. T absconds to China and takes $10,000 in cash, then what possible legal action will he face?

According to section 135 of the Bankruptcy Ordinance, any persons who are adjudged bankrupt will be guilty of an offence (unless they prove that they had no intent to defraud) if after the presentation of a bankruptcy petition, or within six months before such a presentation, quit Hong Kong and take with them, or attempt or make preparations to quit Hong Kong and take with them, any part of their properties to the amount of $100 or more, which should by law be divided among their creditors. Such persons will be liable to imprisonment for up to two years.

Also with reference to section 136 of the Bankruptcy Ordinance, any persons against whom bankruptcy orders are made will be guilty of an offence if they conceal or absent themselves from their usual or last known place of abode or business or quit Hong Kong, with intent to avoid service of any legal documents in bankruptcy or to avoid examination of their affairs or otherwise to delay any bankruptcy proceedings against them. Such persons will also be liable to imprisonment for up to two years.

In that case, Mr. T has committed bankruptcy offences and may be liable to imprisonment.

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