District courts in Japan have jurisdiction to hear foreign debt collection cases in Japan but it is important to consider the correct venue for debt collection in Japan.
The best venue for debt collection in Japan is the court in the jurisdiction where the debtor lives. This provides the fairest opportunity for the debtor to present a defense and often will also be the court closest to the property and assets that will likely be used to pay the debt.
However, if the debtor owns property in Japan but does not live in the country, the proper venue should be the court where the property is located or where the debt was incurred. This provides the court with easy access to the debtor’s assets if it needs to order the sale or transfer of the property to satisfy the debt.
It is important to note that debt collection in Japan can be difficult if not impossible if the address of the debtor is not known to the person trying to collect the debt. An investigation into the whereabouts of an individual can be quite difficult, however, it is much easier to ascertain the location of a company by performing a corporate search.
If you have any questions about enforcing a debt in Japan, please contact our office to set up a legal consultation with one of our lawyers.