The bankruptcy estate is composed of the assets held by the applicant at the time of filing for bankruptcy. However, there are some exceptions to what can be included in the estate. When a natural person goes through bankruptcy, the court will limit the estate so that a certain range of assets critical to protecting the debtor’s life cannot be included.
Public prosecutors in Japan handle a variety of cases but in general they are split between two types: violations of Japan’s penal code (criminal cases) and violations of traffic laws. Statistically, the numbers of these cases are similar but criminal cases make up a small majority.
Sometimes, a debtor will still be in the process of performing a contract when he or she files for bankruptcy. If the contract is still at a stage where both the debtor and the contracting party have not finished their performance, the liquidator often has the choice between continuing the contract or canceling it completely. If performance on the contract would result in further assets for the debtor to distribute to creditors, it is in court’s interest to allow the debtor to continue performance of the contract.
In many cases, the largest obstacle to collecting a debt is simply that the debtor does not have the money to pay. Therefore, even after obtaining a judgment and filing for compulsory execution, if the debtor doesn’t have money to pay the debt, there is little hope of a full recovery. In situations where it seems that the debtor simply does not have enough money to satisfy a debt, it may be more cost effective to approach the matter through negotiation.