Debt Relief
Q. How should a sole proprietor handle debts from business failure?
A.
Personal rehabilitation suits those who want to continue business. Even in bankruptcy, you can keep up to 990,000 yen of business tools.
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Options: voluntary arrangement, personal rehabilitation (can keep home with special provision, Art. 196+), or bankruptcy (can retain up to ¥990K of business tools). Management guarantee guidelines may allow debt forgiveness while retaining some assets.
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
Related Questions
Q. What happens when you file for personal bankruptcy? What are the downsides?
Q. What is individual rehabilitation (kojin saisei)?
Q. What is the statute of limitations on debt? What is invocation of prescription?
Q. What is voluntary debt arrangement and how does it differ from bankruptcy?
Q. Can my wages be garnished for unpaid debts?
Related Articles
Personal Bankruptcy in Japan: Procedure and Consequences
Guide to personal bankruptcy in Japan: procedures, consequences, and what assets you can keep.
Debt Restructuring in Japan: Voluntary vs. Court-Supervised Rehabilitation
Comparison of voluntary debt restructuring and individual rehabilitation in Japan, including mortgage protection provisions.
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