Personal bankruptcy cases rise by 13pc
The number of personal bankruptcy petitions rose 13 per cent in the past month, with bankers and law firms expecting more to come as the economy deteriorates further next year.
There were 986 petitions in October, up from 873 in September, according to the latest figures released by the Official Receiver's Office.
It is the second-highest monthly number of petitions in the past 10 months with the highest being 1,081 in July - the most since November 2004.
Hong Kong Association of Banks chairman He Guangbei said there was worse to come as Hong Kong and its neighbours slid into recession, increasing banks' lending risks.
Tse Lin-chung, a legal expert who handles bankruptcy cases, said he expected the number of bankruptcy petitions this month to exceed 1,000.
'Bankruptcy numbers reflect the city's economic situation and unemployment,' he said. 'When the unemployment rate rises, together with an economy which is expected to be even worse next year, the bankruptcy numbers are sure to increase.
'It is just the beginning of the layoff period. The worst is yet to come.'
Mr Tse expected monthly bankruptcy petitions to reach 2,000 in mid-2009 or the third quarter.
He recalled that the last time monthly bankruptcy figures reached 2,000 was between 2002 and the Sars period in 2003. The situation lasted until July 2003.
He said he did not expect to see the numbers rise above 3,000.
The Official Receiver's Office said 656 bankruptcy orders were made last month, down from 1,152 in September.
