Debt Collection in Japan

LAWYERS HANDS-ON THROUGHOUT

Our attorney with 10+ years’ experience handles debt collection in Japan.

20% COMMISSION (INCL. TAX)

Our fee is 20% of the recovered amount. The 10% consumption tax is included.

NO COLLECTION, NO FEE

If we don’t recover any, you don’t pay us any. Risk-free debt collection.

Collecting a debt in Japan can be a severe challenge for international creditors. You will be confronted with language barriers, foreign customs and different laws. Therefore, it is best to contact an English speaking Japanese lawyer for successful debt collection in Japan.

Miyake Law recovers your debts throughout Japan. We have several legal options, including obtaining a court order. In most cases, however, debts are settled out of court without judicial intervention. This is because debtors know what local attorneys can do, and it often makes sense for them to settle debts amicably in terms of time and costs.

Start Here

The 3 stages of debt collection in Japan

1. Demand letter

We send a demand letter to the debtor company to let them know (i) the case has been formally passed to the attorney’s hand and (ii) the case will be brought to court if the debt is not settled. We add the interest agreed in the contract (if any) or a 3% statutory interest on your claim.

In most successful cases, debtors settle the debt at this stage.

2. Court order

If the debtor ignores our demand letter, we will file a motion for ‘demand for payment (shiharai tokusoku)’ with a summary court. You will obtain an enforceable court order in 5-6 weeks unless the debtor raises a formal objection.

3. Enforcement

Suppose the debtor ignores the court order. In that case, we will enforce the court order against the debtor’s assets.

Our debt recovery service optionally includes:

Provisional attachment (kari sashiosae)
Asset search
Tracing the debtor
Company credit report (via Teikoku Databank or G-Search)

A demand letter for debt collection in Japan

What is the process behind debt collection in Japan?

Flowchart

No collection, no fee

We act to collect undisputed debts on a no collection, no fee commission basis, covering all 3 stages of our debt recovery service. Our commission (i.e. success fee) is 20%.

Scope	Commission
Stage 1 to 3	20%

* The 10% consumption tax is included.
* Disbursements and expenses (court fees etc.) are excluded.
* If a long-term payment plan is arranged with the debtor, a management charge is applicable.

Case 1

¥3,000,000, 3-year-old debt, 10% agreed interest rate (per annum).

We claim ¥3,900,000 (¥3,000,000 plus agreed interest). If we recover ¥3,900,000, our fee is ¥780,000 (incl. tax) (= ¥3,900,000*20%), leaving you ¥3,120,000.

Case 2

¥50,000,000, 1-year-old debt, no agreed interest rate.

We claim ¥51,500,000 (¥60,000,000 plus 3% statutory interest). If we recover ¥30,000,000 of it, our fee is ¥6,000,000 (incl. tax) (= ¥30,000,00*20%), leaving you ¥24,000,000.

Membership

How do I get started?

1. You submit the contact form below.

2. We evaluate your case by scrutinising the evidence.

3. We offer you to recover your debt.

4. You sign an engagement letter to instruct us.