I unfortunately was diagnosed with cancer couple of years ago. Due to such unexpected illness, I incurred more than a million HKD debt to cover my medical bills. I am currently working but not enough to cover my debt. I’m still not fully recovered so I’m not sure if I can keep the payments.
I dont’t want to file for bankruptcy but I don’t know if I have other options. Would appreciate your thoughts.
I’m so sorry to hear of your battle with cancer. I suppose the good news is that things appear to have worked out well in your fight against cancer.
You are lucky that Hong Kong kept it’s old British framework in dealing with debt once it was handed back to China.
In Hong Kong you can file bankruptcy and have your debt discharged. See the Official Receiver’s site for details.
But if you want to avoid bankruptcy your best option is an Individual Voluntary Arrangement (IVA). This process would allow you to enter into an agreement to repay your creditors over a five year period of time based on what you can afford to pay.
To arrange an IVA you would need to meet with a Hong Kong based insolvency practitioner. For more on the specifics of a Hong Kong based IVA, click here.
If you do decide to file bankruptcy, you would certainly not be alone. Current Hong Kong bankruptcy filings have risen 62 percent from a year ago.
Please post your responses and follow-up messages to me on this in the comments section below.