Individual rehabilitation reduces debt to 1/5-1/10 with 3-5 year repayment (Civil Rehabilitation Act Art. 221+). Unlike bankruptcy, the housing loan special provision (Art. 196-206) allows keeping your home while restructuring other debts. Two types: small-scale (requires creditor non-objection) and salaried worker (no creditor consent needed but higher minimum payment). Total unsecured debt must be under ¥50M.
Individual Rehabilitation in Japan: Keeping Your Home While Reducing Debt
Key Takeaways
- ✓Individual rehabilitation allows significant debt reduction while keeping your home
- ✓The housing loan provision lets you continue mortgage payments normally
- ✓Minimum repayment amounts are determined by total debt level
- ✓Both employees and self-employed persons can use this if income is stable
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