en
Debt Collection Hong Kong:
recover your money
Do you have a business client in Hong Kong who is not paying an invoice? Or do you perhaps have unpaid wages from an employer in Hong Kong? Collecting an outstanding debt is never easy when the debtor is uncooperative, especially not when they are on the other side of the world.
Fortunately, Collection Company knows exactly what needs to be done to get your debtor in Hong Kong to settle their outstanding bill. If they do not pay voluntarily, we can recover debts through the courts. We can also leverage our network of the best lawyers and legal experts in Hong Kong.
- One dedicated English-speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specialized in debt collection in Hong Kong
Although Hong Kong is part of China (which has recently reinforced its grip on the administrative region with a national security law), Hong Kong still has a significant degree of autonomy in deciding on internal matters. It has its own legal system, which affects debt collection procedures. These work slightly differently in Hong Kong than on the Chinese mainland.
Therefore, it is important to rely on a specialized international debt collection agency that knows exactly how the debt collection process in Hong Kong works. Collection Company has a broad network of debt collection specialists in Hong Kong. They are well-versed in the local customs and Hong Kong law regarding non-payment and debt recovery.
As a client, you will communicate with our English-speaking international collection specialist. This means you have a clear point of contact and are not hindered by time differences or language barriers.
Do you want to know if your claim in Hong Kong has a chance of success? Then request a free and non-binding consultation with one of our debt collectors.
Why Collection Company for your debt collection in Hong Kong?
- Global coverage
- One dedicated English speaking contact
- Specialized in international and local laws
- Extensive network with local specialists (international lawyers and bailiffs)
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
Submit your claim now?
Do you have outstanding claims in Hong Kong? Enter your contact details, and one of our debt collection specialists will contact you as soon as possible to discuss your claim.
How does debt collection work in Hong Kong?
An efficient debt recovery process in Hong Kong starts with an amicable phase. We aim to collect the debt outside of court by contacting your debtor and reminding them of their obligations and the consequences of non-payment. An amicable (or out-of-court) debt collection is usually the most efficient and cost-effective way to recover unpaid debts.
However, if we are unable to resolve the matter amicably, we can initiate legal proceedings through our debt collection partners in Hong Kong. You can read below about how both the extrajudicial and judicial phases work in Hong Kong.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Out-of-court debt collection
During an out-of-court debt recovery, we attempt to collect your unpaid invoice without court intervention. We do this by sending payment reminders to your debtor. If we receive no response, we gradually increase the pressure by sending dunning letters and demands, calling your debtor, and reminding them via SMS or email about the outstanding invoice.
In total, we attempt to get in contact with the debtor 16 times.
We might also file a claim with the Hong Kong Monetary Authority or Licensed Money Lenders association. These are two self-regulatory associations.
Ultimately, we send a formal notice in which we make it clear that we will take legal action if your debtor does not pay the receivable. We directly state that there will be associated costs, causing the debt to increase.
Therefore, most debtors choose to settle the invoice.
Legal procedures in Hong Kong
If we’re unable to recover the debt through pre-legal amicable negotiations, we will take your debt collection case to one of the Hong Kong courts. Through formal legal action, we can then enforce payment.
The court we need to go to in Hong Kong depends on the amount of the outstanding debts:
- Claims up to HK$75,000: Small Claims Tribunal
- Claims from HK$75,000 to HK$3,000,000: District Court
- Claims over HK$3,000,000: High Court
Small claims
For a claim of less than HK$75,000, we must file your claim with the Small Claims Tribunal. This requires completing several forms with your details, those of your debtor, and the claim itself. These will then be delivered to your debtor by a court bailiff.
After receiving the documents, your debtor has the opportunity to pay the debt. In that case, the case will be dismissed. Your debtor can also request the tribunal to allow them to pay the debt in installments. In this case, they must demonstrate, based on their income and expenses, that they can indeed meet the payment terms.
If your debtor simply ignores the claim, the judge will grant your claim (provided there is sufficient evidence to support it).
If your debtor disagrees with the claim, they can file a defense. In that case, a hearing will be scheduled, after which the tribunal will make a ruling.
Claims over $75,000
If you have a claim that exceeds HK$75,000, the small claims procedure is not possible, and we must initiate ordinary proceedings at the District Court. To begin such a procedure, we need to summon your debtor (call them to appear in court). This does not have to be done by a bailiff. We can, for example, deliver the summons ourselves, drop it in the mailbox, or send it by registered mail.
Your debtor then has 28 days to file their defense with the court. If your debtor fails to do so, a full trial is not necessary; the judge will review the documents we submitted and make a decision immediately.
If your debtor does contest the claim, an investigation phase will follow. During this phase, both parties can request each other to produce documents related to the case.
A hearing will then be scheduled. Both parties must support their position during the hearing with evidence and may call witnesses if needed. Our legal representation will defend your case. During the hearing, the judge will also try to help both parties reach a settlement. If that fails, the judge will render a decision.
Claims above $3,000,000 HK
Claims exceeding HK$3,000,000 must be submitted to the Court of First Instance of the High Court. The procedure is similar to that of the District Court. If the claim is only slightly above HK$3,000,000, the court may decide that the case will be handled by the District Court instead. The costs for a trial at the District Court are lower than at the High Court.
Arbitration
There are also alternatives to a lawsuit in Hong Kong. Many companies nowadays choose arbitration as a way of alternative dispute resolution. This is generally faster than a court procedure.
Arbitration is a form of private adjudication; the dispute is not submitted to a judge, but to an arbitrator or arbitration panel (appointed by the parties themselves). Similar to a court, the arbitration panel reviews the evidence, hears the parties, and issues a ruling. This ruling is binding, and it is not possible to go back to court afterward.
In the corporate world, arbitration is widely used because it allows for quick resolution of disputed business claims. Parties do not have to wait for the court’s availability, and depending on the agreements made, there is no possibility of appeal.
To resolve a business conflict through arbitration, both parties must agree to it. This can be stipulated in the terms of sale or general terms and conditions in advance. However, it is also possible to invoke arbitration after the conflict arises, provided both parties agree.
Enforcing the judgment
A favorable ruling from the court unfortunately does not mean that you will have the money in your account. The court does not take action on its own to ensure that your debtor actually pays the amount owed. What if your debtor does not pay the debt after a court ruling?
To obtain payment, we need to request the court to enforce the judgment. The judge will then issue a payment order and instruct the court bailiff to collect the debt. The judge may also prohibit your debtor from leaving Hong Kong. The bailiff can do this by seizing your debtor’s income or confiscating items to sell them.
Interim attachment in Hong Kong
Of course, you don’t want your debtor to hide money or belongings during the legal proceedings, leaving you with nothing once a judgment is issued. That’s why, in the early stages of the process, it’s possible to request the court to secure your debtor’s assets. If the judge agrees, measures such as freezing bank accounts or having goods held by the bailiff can be taken while the case is pending.
Insolvency proceedings
When dealing with a persistent non-payer, especially one where it’s difficult to impose a lien, a bankruptcy petition can be a way to get things moving. If your debtor is declared bankrupt, their business will be closed, and they may also lose all their personal assets.
Many non-payers often come forward with the owed amount once a bankruptcy petition is filed. If your debtor pays the full amount owed, we can stop the bankruptcy process.
If your debtor genuinely cannot meet their payment obligations, the court in Hong Kong will declare your debtor bankrupt. In that case, a trustee will be appointed to sell all assets and distribute the proceeds to creditors as much as possible.
Advice about your case?
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Legal fields of debt recovery in Hong Kong
At Collection Company, we collect debts across various legal fields. This can include business debt collection, unpaid invoices, but also damage claims, rental disputes, or overdue salaries.
We can assist you with claims in the following legal fields:
- Construction Law
- Rental and Leasing
- Buying and Selling
- Employment Law
- Agency Agreements
- Transportation
- Damages and Wrongful Acts
We work for clients directly as well as for intermediaries (such as law firms and accounting offices).
Other debt collection services
- Reliable advice on contracts and terms
- Credit information about companies in Hong Kong
- Disputes including issues like Retention of Title and Right of Recourse
- Mediating in reaching private settlements and agreements
Start your debt collection in Hong Kong
You can submit your claim directly to us using our debt collection registration form. Would you like to consult with one of our legal professionals first? Leave your details or give us a call at +31 70 – 762 0330.
Free advice on debt collection in Hong Kong
Submit your personal information and plan your free consult.
FAQ: Frequently Asked Questions about debt collection in Hong Kong
FAQ: What do we need for a debt collection in Hong Kong?
For a judicial debt collection, it is important to come well-prepared. Therefore, we would like to receive documents and other evidence related to your claim. This could include contracts, invoices sent, and reminders.
We understand that you may not always have these documents anymore. If that’s the case, it’s not a problem. Our debt collection specialist can discuss with you which documents you do have to support your claim.
If possible, we would like to receive:
- A copy of the agreements made, such as a purchase agreement, as well as email correspondence with your debtor, a fax confirmation, or a summary of what has been agreed upon
- Copies of sent (outstanding) invoices
- Copies of sent reminders
- Your general terms and conditions applicable to the agreement
- Proof of delivery
FAQ: Is a retention of title clause legally valid in Hong Kong?
In business transactions, ownership of goods generally transfers to the buyer at the time of delivery. If your debtor then fails to pay, they are still considered the legal owner. To prevent such a situation, it is possible to agree on a retention of title. A retention of title is a clause in the terms of sale that stipulates that ownership only transfers once the full purchase amount has been paid. A retention of title is legally valid in Hong Kong.
FAQ: What is the statute of limitations for claims?
Like in many countries, a statute of limitations for claims applies in Hong Kong. For commercial claims, this limitation period is 6 years. This means that your case must be brought to court within 6 years after the deadline for payment has passed.
FAQ: What language are used during court cases in Hong Kong?FAQ: What language are used during court cases in Hong Kong?
Lawsuits in Hong Kong are conducted in one of the two official languages: English or Chinese. The language used during the trial at the first instance is usually also the language of the appeal, unless the appellant requests a change in language.
FAQ: Why not hire a debt collection agency in Hong Kong?
If you engage a debt collection agency based in Hong Kong, you’ll face a significant time difference and may also encounter a language barrier. Additionally, many debt collection agencies specialize in the amicable phase but not in the legal process.
By letting Collection Company collect your debt, you’ll have one English-speaking point of contact. Because we work with the best lawyers and attorneys in Hong Kong, we can manage the entire debt collection process for you, from the amicable phase to court proceedings. We always follow good debt collection practices.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
