Checklist for Debt Collection in Hong Kong

Contract and tort claims: 6 years from when the cause of action accrued. Action based on a deed: 12 years from the date on which the cause of action accrued.

Pre-action communications, including a lawyer's letter of demand, do not interrupt limitation periods. An action is begun when a writ or originating summons is issued through the courts.

Note:

• A writ is issued where material facts are in dispute;
• An originating summons is issued where the facts are largely undisputed and the main issues are points of law.

A lawyer’s demand letter is not a prerequisite but is good practice as pre-action conduct can have adverse implications on costs.

Note: A lawyer's demand letter holds no automatic legal consequences. However, a statutory demand letter is a legal notice requiring payment of a debt of a minimum amount of HK$10,000 (around US$1,200) within 21 days. If not satisfied within 21 days, a company is deemed as "unable to pay its debts", entitling a creditor to initiate a compulsory winding-up

Depends on the amount claimed:

• claims not exceeding HK$75,000: The Small Claims Tribunal;
• claims exceeding HK$75,000 till HK$3 million: The District Court;
• claims exceeding HK$3 million: The High Court (comprises of the Court of Appeal and Court of First Instance).

If interest is contractually provided for (or, founded in a "quasi-contract" or tort), it usually contributes towards the claim amount and determining the competent court. Otherwise, the court has discretion to determine pre-judgement interest, which is excluded from determining the jurisdiction of the court.

• A solicitor should be appointed through a retainer
• The appointment of a barrister must be through the instructing solicitor.
  

Proceedings begin with a writ of summons, along with the plaintiff's statement of claim.

• A writ of summons notifies the defendant debtor of the legal action against them.
• A statement of claim details the case: including the facts, legal basis and remedies.

It usually takes two years from commencing proceedings to obtaining a judgement, subject to case complexity and interim applications.

The average wait time from application, to fix date to hearing was 170 days in The Court of First Instance for civil matters in 2024 (Civil Fixture List).

Not available

• Parties are free to reach an agreement on costs.
• Absent agreement, the starting point is that costs generally follow the event: i.e. fall to the unsuccessful party (as long as they are necessary or proper), unless, there are any other circumstances warranting a different order.
• When the court departs from this general position, factors such as any settlement offers, the unreasonable conduct or misconduct of parties, as well as partial (issue-based) success of the parties will be taken into account.
• An indemnity costs order (a more generous costs award than costs following the event, except where it is unreasonable) may be made where there are special circumstances, included but not limited to where litigation is vexatious, scandalous, frivolous or oppressive.

• Pre-judgement interest:

If interest is not already accruing (such as contractual interest), the court may award interest, at a discretionary rate, for the period between the cause of action arising and the date of the judgment (or where a sum is paid before judgement, the date of payment).

• Post-judgement interest:

Judgment debts accrue simple interest from the judgment date until paid, either at a court-ordered rate or, if none is given, at a rate set by the Chief Justice. The interest rate set as of 1 July 2025 is 8.250% per annum.