When a debtor files for bankruptcy the court needs a way to organize all of the debtor’s belongings so that they can easily be divided up among the creditors. Courts will do this by categorizing all of the debtor’s assets in what is called a “bankruptcy estate.”
The debtor’s estate will include all of the assets owned by the debtor at point her or she entered bankruptcy as well as any further assets acquired by the debtor until the bankruptcy proceedings have finished. These assets naturally include any property, money or investments located within Japan but importantly the estate can also include assets that are located abroad. However, creditors should keep in mind that there are some exceptions to this general rule.
If you have any questions about contracts with a bankrupt company please contact our office for a legal consultation.