Why is it important to negotiate a foreign debt?

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Having a foreign judgment against a Japanese person or company entitles the debt’s owner to legally enforce the debt in Japan.  However, while this is the only solution in many cases, enforcing that debt can cost money and time and it may be advisable to pursue other options before filing a lawsuit.  Rather than immediately pursue legal action, usually it is beneficial to have an attorney contact the debtor and open negotiations first. 

As litigation will also be an expensive and time consuming process for the debtor, many debtors will be open to negotiating and settling the debt out of court.  Furthermore, while enforcing a court order can only result in a monetary award, negotiating with the debtor can also produce more creative solutions to the dispute that may be more advantageous for both parties.  For example, the debtor may not be able to provide money but is in the position to provide the creditor with goods or services of equal or greater value.

If you have any questions about enforcing a debt in Japan, please contact our office to set up a legal consultation.