FAQ Archives - Page 72 of 94 - Ohara & Furukawa

February 24, 2016

What types of bankruptcy are possible in Japan?

In Japan, there are two main laws that deal with companies that are in dire financial condition: rehabilitation laws and insolvency laws.

February 24, 2016

If a debtor goes through bankruptcy, will the creditor get any money back?

Bankruptcy is a judicial process by which a debtor’s assets are divided among his or her creditors to pay off as much of the debtor’s debt as possible. To achieve these ends, the debtor’s assets will be converted to money in order to be fairly divided among creditors.

February 24, 2016

What is corporate reorganization and how does it affect a business partnership?

Corporate reorganization is a process by which a company can petition the court to help it meet its debt obligations. The court will appoint professionals such as trustees and examiners to work with the company and its creditors to find a way to keep the company afloat. The main focus of corporate reorganizations is usually on preserving as many jobs as possible and maintaining a stable continuation of the company.

February 24, 2016

Is there a way to force a debtor to pay off a debt?

If a defendant owes a debt in Japan, or a foreign debt is being enforced against him, but he is unwilling to make payments, a Japanese court can grant a compulsory execution order to force the debtor to pay. This compulsory execution order can be used to enforce the debt against the debtor’s property or assets in Japan. This means that, whether the debtor wants to pay or not, his or her property can be confiscated to pay the debt.