Debt collection
We support debt collection for Japanese companies.
Debt collection in Japan
For foreign companies doing business with Japanese companies, the biggest concern seems to be how to collect the receivables in the event that the Japanese company does not pay.
To collect debt in Japan, you need to know Japanese law. In addition, since the court procedure in Japan is conducted in Japanese, there will be a language problem. Furthermore, there may be various concerns such as when you are required to appear in court, and you may hesitate to go through the procedure. The cost for such procedures may be the issue you may worried about.
Our office will clear the above concerns and support the procedure when a foreign company collects a claim against a Japanese company.
1. Provisional (Temporary) seizure procedure
If the debtor's assets such as bank account or real estate are known in advance, the debtor's assets can be temporarily seized for future recovery by the provisional seizure procedure.
It can be done in a short period of time before obtaining a judgment by the court, but it is required to deposit collateral of about 20% to 30% of the amount of the claim in the court.
This is an effective procedure if you have enough evidence such as a contract to prove the claim.
2. Payment demanding procedure
If the debtor does not make a payment even though there is no ground to argue, it is effective to carry out a payment demanding procedure.
By payment demanding procedure through a summary court, the court will issue a payment order that has the same effect as the judgment if the payment is demanded and the debtor does not object.
3. Ordinary litigation
If the debtor raises an objection to the payment demanding procedure, or if the debtor disputes the payment obligation from the beginning, the creditor's claim will be considered through the ordinary litigation procedure.
In many cases, the plaintiff and defendant will be agreed to make settlement to make payment by a portion of the claiming amount or payment in installments, during the court proceedings.
4. Asset seizure procedure
If a payment order by payment claiming procedure or a judgment by ordinary litigation is finalized, the debtor's assets can be seized to recover the claim.
If you have seized the debtor's assets in advance by the provisional seizure procedure in 1 above, you can recover the claims from those assets.
Therefore, it is necessary to investigate in advance that the debtor has enough assets to match the amount of the debt.
Cost
1. Temporary seizure procedure
- Attorney's fee
- 2.5% of the amount of claims + consumption tax
(minimum rate 150,000 yen + consumption tax) - Actual cost
- Approximately 10,000 yen
- Deposit
- 10% to 30% of the amount of receivables
(all or part of deposit will be refunded if payment order or final judgment can be obtained.)
2. Payment reminder procedure
- Attorney's fee
- [1] Starting Fee 2.5% of the amount of receivables + consumption tax
(minimum rate 150,000 yen + consumption tax)
[2] Remuneration fee 5% of the collected amount + consumption tax - Actual cost
- Approximately 2% of the complaint amount
(determined by the complaint amount)
3. Ordinary proceedings (first trial)
- Attorney's fee
- [1] Starting Fee 5% of the amount of receivables + consumption tax
(minimum rate 300,000 yen + consumption tax)
[2] Remuneration fee 10% of the collected amount + consumption tax - Actual cost
- Approximately 5% of the complaint amount
(determined by the complaint amount) - * Additional costs will be incurred for appeal procedures and appeal procedures.
4. Asset seizure procedure
- Attorney's fee
- 2.5% of the amount of claims + consumption tax
(minimum rate150,000 yen + consumption tax) - Actual cost
- Approximately 10,000 yen
It is also possible to calculate the cost according to the time to be provided of legal service by using the time charge.