DEBTS COLLECTION

As to debts collection, laws are different from country to country. Especially, mortgage, lien, preliminaly injunction, injunction, specific performance related legal systems are very different.

If you want to avoid debts collection related despute, we recommend you to consult with attorneys in advance and make low-risk written contracts.

When your opposing party does not pay, what is important is investigating and collecting information about the debtor, related entities of the debtor and the asset of the debtor.

Earth& Law Firm has dealt with many debt collection cases (execution of mortgage and lien, making contracts and demand letters, negotiation, mediation, litigation, preliminary injunction, injunction, specific performance, and other measures). We are providing services to foreign business entities.

EXECUTION OF CONTRACT

What should I prepare for the case the counterparty may not pay the price in the future?

In general, it is advisable to check the commercial registry, certificate of residence, bank accounts, ownership of real estate, automobiles and stocks, and, if possible, accounting documents related to the counterparty, before exexuting the contract.
If possible, it is also advisable to establish a mortgage, pledge, or joint guarantor.
If the contract is notarized, it is possible to enforce the payment of the price without resorting to file a lawsuit later, and it will also be a strong piece of evidence of the contract.
It is also advisable to obtain information on the counterparty's clients and affiliated companies.

DEFAULT

My counterparty has not paid me after the due date of payment. What shuold I do?

You can send a notice by content-certified mail with proof of service, file a petition for demand for payment, file for mediation, file for a temporary restraining order, file a lawsuit, or file for compulsory execution. Regardless of the method used, it is important to be able to ascertain the assets of the counterparty. In this sense, it is important to conduct an investigation before executing the contract.

PREVENTION OF LAPSE OF STATUTE OF LIMITATIONS

Is there anything I should be aware of regarding the statute of limitations period?

The Civil Code amendments made in April 2020 significantly changed the statute of limitations period.
General claims are subject to the shorter of five years from the time the right is known to be exercisable or ten years from the time the right is exercisable.
Claims for damages for tortious acts are for three years from the time of knowledge of the damage and the perpetrator, or for 20 years from the time of the tortious act, whichever is shorter.
However, the right to claim damages for infringement of a person's life or body, whether in the case of default or in the case of tort, is subject to the shorter of five years from the time of knowledge, or 20 years from the time when the right can be exercised or the time of the tortious act.
The right of rescission is subject to the shorter of five years from the time when the defect can be ratified or 20 years from the time of the act with defect.
The right established by a final and binding judgment or one having the same effect as a final and binding judgment is subject to 10 years.
Property rights other than claims or ownership rights are subject to 20 years from the time when the rights can be exercised.
With respect to laws other than the Civil Code, the right to claim damages under the Product Liability Law is subject to three years from the time of knowledge of the person who is liable for damages and the damages, or 10 years from the time when the manufacturer, etc. delivered the product, whichever is shorter.
The right to claim wages under the Labor Standards Law is subject to five years from the time when it can be exercised.
The right to claim accident compensation and to take paid leave under the Labor Standards Law is subject to 2 years from the time when it can be exercised.