Collection Strategies Japanese Creditors Should Know About

By vertikaluser In Blog On January 30, 2014

Debt Collections Japan
Unbeknown to a novice creditor, Japan has different statutes and limitations prescribed by the law that protects you from debtors who are determined to run away from their obligations. If your debtor has severed all ties of communication and you are at the brink of giving up, be sure to read this blog until the end because we will tell you the different legitimate collection strategies in Japan.
Orchestrated Negotiation
Negotiating is a pre-legal action that must be exhausted by the creditor to the fullest extent before resorting to any sort of legal action. This means contacting your debtor in the hopes of arriving at a solution, negotiating and hiring a debt collection agency who can handle the case thoroughly.
It is important that you document every aspect of all the pre-legal steps you take just in case things do not go as planned. Be sure to document new agreements in writing so as to avoid any confusion of overrides in your current deal.
If these steps seem tedious for you, you can reach out to a reputable debt collection agency that can help you by taking care of the entire negotiation process. Debt Collections Japan has some of the most experienced negotiators in the country that can help you reach amicable resolutions to a seemingly impossible case.
Do not hesitate to reach out to our debt collection agents who have pertinent experience in handling all types of debt recovery cases – from personal to business-incurred debts. We make sure we represent you in the best light possible so as not to damage your reputation while still maintaining firm throughout the entire process.
Court Proceedings
If all efforts mentioned above has been exhausted, the last resort is to file a law suit. Summary Courts all over Japan decide over cases of debt recovery, heavily influenced by the Supreme Court. This means you are fully protected by the justice system in your quest to get back what you are owed.
The first step in taking this legal step is to send a demand letter. Your demand letter should contain all pertinent information concerning the case – from the amount owed to all efforts that were utilized to get the debtor to pay you back. This is the reason why we heavily encourage creditors to document every transaction as they may be helpful when you decide to take the case to higher court.
A demand of payment can then be initiated with full consent from the court. Court clerks send out the demand of payment within a week of having the case on their desk and as a general rule, a debtor has 3-6 months to chalk up what they owe.
In an event where a debtor contests the demand within the first two weeks of being served the demand of payment, the case will be subjected to normal court proceedings.
In an event where your debtor is deemed insolvent or incapable of paying what they owe due to a lack in capacity and assets to compensate for the amount, things can get more challenging. If a debtor is able to provide the court with proper records that support their claims of being insolvent, they may still be reprimanded by the law but the amount they owed will be paid back at a much longer time frame. This matter can be trickier so it is best that you confer with your legal counsel on the best way to go around such case.
If you want to take the right pre-legal steps in reclaiming what you are owed, reach out to one of our seasoned debt collection agents who are trained and skilled in handling even the toughest cases. We will design a unique collection strategy that is based on the situation at hand and your needs. Contact us today and let us help you get back what is rightfully yours.