Utilizing Experts in Japanese Bankruptcy Administration: When Does a Trustee Need Outside Help? Japanese bankruptcy proceedings (破産手続 - hasan tetsuzuki) are typically managed by a court-appointed bankruptcy trustee (破産管財人 - hasan kanzainin), who is almost invariably a lawyer (弁護士 - bengoshi). While these trustees possess extensive legal knowledge and experience in insolvency matters, the complexities of modern businesses, diverse asset types, and specialized
Can a Business Be Sold as a Going Concern in a Japanese Bankruptcy? When a company in Japan enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), it is undergoing a liquidation process. The primary goal of the court-appointed bankruptcy trustee (破産管財人 - hasan kanzainin) is to collect the debtor's assets, convert them into cash, and distribute the proceeds to creditors according
Impact of Japanese Bankruptcy on Pending Lawsuits When a company or individual in Japan enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), the legal landscape surrounding the debtor changes dramatically. One of the most significant areas affected is any ongoing litigation (訴訟 - soshō) in which the debtor is involved, whether as a plaintiff or a defendant.
Simultaneous Bankruptcy of a Japanese Company and its Representative Director: Key Considerations In Japan, particularly with small to medium-sized enterprises (SMEs), it is a common occurrence for a company facing insolvency and its representative director (代表取締役 - daihyō torishimariyaku) to file for bankruptcy proceedings (破産手続 - hasan tetsuzuki) concurrently. This scenario, often referred to as a "co-existent bankruptcy of a corporation
When Creditors Initiate Bankruptcy: Understanding Involuntary Petitions in Japan While the majority of bankruptcy proceedings (破産手続 - hasan tetsuzuki) in Japan are initiated voluntarily by the debtors themselves (known as 自己破産 - jiko hasan), Japanese law also provides a mechanism for creditors to force an unwilling or inactive debtor into bankruptcy. This process, known as a creditor-filed or involuntary
Handling Overseas Assets in a Japanese Bankruptcy Proceeding In an increasingly interconnected global economy, it is common for Japanese companies and individuals facing bankruptcy (破産手続 - hasan tetsuzuki) to possess assets located in foreign jurisdictions. These overseas assets can range from real estate and bank accounts to shares in foreign subsidiaries or receivables from international customers. For the
What Constitutes Bankruptcy Crimes in Japan and What are the Consequences? The Japanese bankruptcy system (破産手続 - hasan tetsuzuki) is designed to provide an orderly process for dealing with insolvency, aiming for a fair distribution of a debtor's assets among creditors and, for individuals, a chance for a financial fresh start. To protect the integrity of this system and
Which Debts are Not Dischargeable in Japanese Individual Bankruptcy? For individuals in Japan navigating the complexities of personal bankruptcy (自己破産 - jiko hasan), the prospect of obtaining a discharge of debts (menseki - 免責) offers a critical pathway to a financial "fresh start." A discharge order, once granted by the court, releases the debtor from the legal
Grounds for Denial of Discharge and Discretionary Discharge in Japanese Individual Bankruptcy The discharge of debts (menseki - 免責) is a pivotal element of the Japanese individual bankruptcy system (自己破産 - jiko hasan), offering debtors a crucial opportunity for a financial "fresh start." However, this relief is not granted unconditionally. The Japanese Bankruptcy Act (破産法 - Hasan Hō) outlines specific
Discharge of Debts for Individuals in Japan: The "Menseki" System For individuals in Japan overwhelmed by debt, filing for personal bankruptcy (自己破産 - jiko hasan) offers a legal pathway to financial relief and a chance for a "fresh start" (経済的再生 - keizaiteki saisei). A cornerstone of this process is the system of "discharge" (menseki - 免責)
Discovery of Assets After a Japanese Bankruptcy Case is Closed: What Happens Next? The formal conclusion of a Japanese bankruptcy proceeding (破産手続 - hasan tetsuzuki), whether through a "Termination" order after distributions (破産手続終結 - hasan tetsuzuki shūketsu) or a "Discontinuance" order due to lack of assets (異時廃止 - iji haishi), generally marks the end of the bankruptcy trustee'
Concluding a Japanese Bankruptcy Case: "Discontinuance" vs. "Termination" All Japanese bankruptcy proceedings (破産手続 - hasan tetsuzuki) that involve the appointment of a bankruptcy trustee (破産管財人 - hasan kanzainin) must eventually come to a formal end. The manner in which a case concludes, however, depends significantly on whether the bankruptcy estate (破産財団 - hasan zaidan) possesses sufficient assets to
Simplified Distributions in Small-Scale Japanese Bankruptcies (Kan-i Haito) When a company in Japan enters bankruptcy proceedings (破産手続 - hasan tetsuzuki), the ultimate goal for creditors is to receive a distribution (配当 - haitō) from the debtor's liquidated assets. While formal and comprehensive distribution procedures exist, Japanese bankruptcy law also provides for "Simplified Distribution" (簡易配当
Distributions to Creditors in Japanese Bankruptcy: Types and Procedures The culmination of a Japanese bankruptcy proceeding (破産手続 - hasan tetsuzuki), from a creditor's perspective, is the distribution (配当 - haitō) of the debtor's liquidated assets. After the bankruptcy trustee (破産管財人 - hasan kanzainin) has collected and sold the assets of the bankruptcy estate (破産財団 -
Disputed Claims in Japanese Bankruptcy: What are Common Issues in Claim Allowance? When a company or individual in Japan enters bankruptcy proceedings (破産手続 - hasan tetsuzuki), a crucial phase is the determination of creditor claims. The bankruptcy trustee (破産管財人 - hasan kanzainin) is responsible for investigating all submitted proofs of claim (債権届出 - saiken todokede) and stating their position on whether to
Filing and Investigating Claims in Japanese Bankruptcy: A Creditor's How-To When a business partner or customer in Japan enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), creditors, both domestic and international, face the critical task of asserting their claims to have a chance at recovering outstanding debts. The Japanese bankruptcy system has a structured process for filing proofs of claim
Can a Bankrupt Japanese Company Receive Tax Refunds? When a company in Japan enters bankruptcy proceedings (破産手続 - hasan tetsuzuki), the focus is understandably on managing debts and distributing remaining assets to creditors. However, an often-overlooked aspect is the potential for the bankrupt company's estate to receive tax refunds (税金の還付請求 - zeikin no kanpu seikyū). A
Navigating Tax Compliance for a Bankrupt Company in Japan: The Trustee's Role When a company in Japan enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), its ordinary business operations cease, but its obligations regarding taxation do not simply vanish. The court-appointed bankruptcy trustee (破産管財人 - hasan kanzainin) steps in to manage the company's affairs, and a significant part of this
Tax Claims in Japanese Bankruptcy: How are They Categorized and Prioritized? When a Japanese entity enters bankruptcy proceedings (破産手続 - hasan tetsuzuki), various creditors come forward with their claims. Among these, claims asserted by national and local tax authorities (租税債権 - sozei saiken) hold a special position. Japanese bankruptcy law provides a detailed and often complex framework for categorizing these tax
Unpaid Wages in Japan: Leveraging the "Wage Payment Security System" (Chintai Tategae Barai Seido) When a company in Japan faces bankruptcy (破産手続 - hasan tetsuzuki), one of the most immediate and pressing concerns for its employees is the status of their unpaid wages and retirement benefits. Recognizing the potential for severe hardship, Japan has established a crucial safety net known as the "Unpaid
Protecting Employee Claims in a Japanese Corporate Bankruptcy When a company in Japan succumbs to financial distress and enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), its employees are often among the most vulnerable stakeholders. Concerns about unpaid wages, accrued retirement benefits, and the abrupt loss of livelihood become paramount. Japanese bankruptcy law, along with related labor protection
Priority of Claims in Japanese Bankruptcy: Administrative Claims (Zaidan Saiken) vs. Bankruptcy Claims (Hasan Saiken) When a Japanese entity enters bankruptcy proceedings (破産手続 - hasan tetsuzuki), one of the most critical aspects for all stakeholders is understanding the "waterfall" – the order in which different types of claims will be paid from the debtor's assets. Not all claims are created equal. Japanese
Creditors' Meetings in Japanese Bankruptcy: Purpose and Procedure When a company or individual in Japan enters formal bankruptcy proceedings (破産手続 - hasan tetsuzuki), a series of structured events unfolds under the supervision of the court. Among the most significant of these for creditors are the creditors' meetings (債権者集会 - saikensha shūkai). These meetings serve as a primary
Understanding "Expansion of Free Assets" (Jiyu Zaisan Kakucho) in Japanese Individual Bankruptcies When an individual in Japan files for personal bankruptcy (自己破産 - jiko hasan), the primary goals are to provide relief from overwhelming debt and to offer a "fresh start" (経済的再生 - keizaiteki saisei, economic rehabilitation). A key component in achieving this fresh start is the determination of which
Unperfected Claim Assignments vs. Bankruptcy Trustee: A 1983 Japanese Supreme Court Affirmation On March 22, 1983, the Third Petty Bench of the Supreme Court of Japan issued a judgment that reaffirmed a critical principle in Japanese insolvency law: an assignee of a monetary claim must strictly adhere to perfection requirements, including obtaining a notice with a "certified date," before the
