Seizing a debtor’s property through compulsory execution can be one of the most efficient ways to collect on a debt that the debtor otherwise does not have the cash assets or willingness to pay. However, assembling the necessary court approval can take time, as can the actual process of seizing the property. Therefore, courts involved in enforcing a compulsory execution are vested with the power to issue restraining orders upon request to prevent the debtor from taking action to substantially reduce the value of the property before the eventual sale. This protects the value of the asset and maximizes the recoverable amount of the debt for the creditor.
If you have any questions about compulsory execution in Japan, please contact our office to set up a legal consultation.