Once a bankruptcy case starts, creditors of the bankrupt party lose all rights to pursue payment of any debts outside of the bankruptcy proceedings. If one creditor were to settle with the debtor outside of the bankruptcy court it would unfairly prejudice the remaining creditors so the bankruptcy law specifically prohibits creditors from privately pursuing their claims.
Determining whether a debtor is a real, registered company is an important first step when collecting a debt. Many individuals who have never incorporated their business will still print business cards with a business’s name and logo in order to seem more like a reputable company. However, searching the list of registered companies in Japan provides a quick and effective way to determine whether the debtor is a real company or just an individual pretending to own an incorporated business.
A main concerns when enforcing a debt in Japan is that the debtor will simply remove any money from his or her bank account, hide it, and then pretend to be insolvent when the creditor tries to enforce the judgement. In order to prevent this, the creditor can take a legal procedure to freeze any known bank accounts so the debtor cannot withdraw the funds.
When attempting to collect a debt in Japan it is best to assemble as much evidence of the debt as possible beforehand. The most obvious and important evidence that should be collected are copies of invoices, bills and receipts that clearly establish the debt. However, there are many other types of evidence that can also be of great help in successfully pursuing a debt.