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Assertion of Monetary Claims

Claim collection in Japan has become an increasingly challenging task in times of a difficult economic environment. Where claims cannot be successfully settled out-of-court, the sole remaining option is often the enforcement by court order against the debtor.

Japan offers standard legal instruments to assert and collect monetary claims, which, in essence, are similar to those under German law. Generally in Japan, settling a payment dispute out-of-court is more the rule than the exception. One reason for this is the fact that claim collection through court is a rather time and money consuming process and therefore is often avoided. In addition, the enforcement of a court-approved title fails in case of a lack of seizable assets of the debtor. As a result, deciding whether to take legal action in order to pursue ones claim in Japan needs to be thoroughly analyzed in each case and is generally only recommendable if the monetary claim is substantial and sufficient assets of the debtor exist to satisfy the creditor.

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