In Japan, only lawyers are allowed to recover debts on behalf of third parties. As an exception, licensed debt collection companies are allowed to collect certain types of debts such as loan claims held by financial institutions[1]. Accordingly, business debts such as unpaid invoices can only be collected by lawyers like us.
Debt recovery requires both legal expertise and practical skills, such as gathering information about the debtor to determine the best recovery strategy. For example, depending on the debtor’s financial position, it may often be advisable, from a cost-benefit perspective, to accept a reduced amount in settlement or agree on a payment plan rather than pursue full recovery through legal proceedings.
Learn more about our debt recovery service on our Debt Collection in Japan page[2] (click the button at the bottom).
Note:
[1] Act on Special Measures Concerning Claim Management and Collection Businesses (Act No. 126 of 1998)
[2] Although there may be a subtle difference in meaning between ‘debt recovery’ and ‘debt collection’, we use the terms interchangeably for convenience.