Having the address of a debtor in Japan is a prerequisite to filing a lawsuit against them. Without an address, a complaint cannot be delivered to the defendant and the court will not have jurisdiction to hear the case. Therefore, obtaining the debtor’s address is often the most critical part of enforcing a debt. There are various ways to determine a debtor’s address but all are heavily dependent on the situation.
Usually parties will negotiate among themselves through email before resorting to the legal process to enforce a debt. If these negotiations fail, often the content of these email exchanges becomes the evidence in a legal case against the debtor. Therefore, it is important to draft emails in a way that maximizes their potential use in future litigation.
For individuals, bankruptcy starts when the person is unable to pay a debt and the time for payment has lapsed. For corporations the standard is a little different. Corporations may file for bankruptcy when they are unable to pay, similar to a normal person, or when they are in a state of “balance sheet insolvency.” Balance sheet insolvency is when the corporation is unable to make payments even by selling its assets.
It is always possible that a debtor company may file for bankruptcy if confronted with a debt that it cannot pay. However, this does not necessarily mean that the creditor will not be able to collect at lease part of the debt. A creditor should be given proper notice before the start of a bankruptcy hearing and will have a chance to claim part of the bankrupt debtor’s assets.