Can compulsory execution be used on a debtor with little to no assets?

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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. 

Negotiation will save the costs associated with litigation and the results may be just as successful.  In some cases, the threat of litigation from an attorney can be just as powerful as actually having a judgment against the debtor.  Furthermore, having an attorney negotiate with the debtor first will ensure that there is enough solid evidence of the debtor’s missed obligation and promise to pay that any subsequent litigation should be much easier to win.

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