If a defendant owes a debt in Japan, or a foreign debt is being enforced against him, but he is unwilling to make payments, a Japanese court can grant a compulsory execution order to force the debtor to pay. This compulsory execution order can be used to enforce the debt against the debtor’s property or assets in Japan. This means that, whether the debtor wants to pay or not, his or her property can be confiscated to pay the debt.
Compulsory execution to forcibly collect a debt in Japan can be used either directly against the debtor and his or her assets, or in certain circumstances, against the debtor’s successor in interest or someone who has taken on the responsibilities of the debtor such as a guarantor.
One of the ways to enforce a debt in Japan is to prove the debtor’s liability with a foreign court judgment establishing the debt. However, in many of these cases the transaction that gave rise to the debt often occurred in a foreign country. In such circumstances the foreign payment order should be enforced in the court with jurisdiction over where the debtor lives in Japan or where the debtor owns property in Japan. Although getting recognition of a foreign debt is a relatively simple process, the foreign judgment will still have to meet the requirements to be enforced under […]