Debt Relief
Q. What happens when you file for personal bankruptcy? What are the downsides?
A.
Bankruptcy eliminates most debts, but you cannot use credit cards or loans for 5-10 years.
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Bankruptcy (Art. 1, 248) discharges most debts except taxes (Art. 253). Downsides: credit blacklist for 5-10 years, assets over ¥990K liquidated (Art. 34), certain job restrictions during proceedings, published in official gazette.
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 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?
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