The notary system in Japan is similar to the system of notarizing documents in foreign countries. Notaries prepare notarial deeds, attest to a private deed and attest to legal documents. When two parties sign an agreement in front of a notary, the notary can provide official proof that the parties signed the document and understood what they were signing.
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.
These days, email exchanges have become ubiquitous and most business communication is now done over the internet rather than a phone line. This change in business norms has provide a great boost for creditors attempting to enforce debts because email exchanges between creditors and debtors often provide solid evidence of the existence of a debt and the debtor’s obligation to pay.
Compulsory execution is a powerful tool for creditors to recover assets from debtors who refuse to pay off their debt. However, as compulsory execution is based upon the power of a Japanese court of law, it is also limited by that same court’s power. Therefore, assets outside of the court’s jurisdiction will not be able to be reached by compulsory execution.