In Japan, bankruptcy petitions can be brought by a variety of parties. The most common situation is for the debtor to file for bankruptcy personally as a way to escape payment, but this does not always happen. When a debtor refuses to file bankruptcy, it is often left to the creditor to file for bankruptcy on behalf of the debtor and submit evidence of unpaid debt as proof that the debtor can no longer make payments on debts.
For corporations, petitions for bankruptcy can be made by directors of the company. The specific ability of directors to file for bankruptcy of the corporation they serve is contained in Japan’s Bankruptcy Act. Furthermore, specific Acts also allow for certain other individuals, such as a liquidator or specific director, to file for a company’s bankruptcy.
In special circumstances, courts and government entities may also petition for the bankruptcy of a company but these situations are much rarer.
If you have any further questions about bankruptcy in Japan please contact our office for a legal consultation.