Settlement of Obligation

For the person with difficulty repaying debts

  We at the judicial scrivener cooperative of Nanohana Law office will do our best to support you in making a fresh start in the settlement of your debts.
  Voluntary bankruptcy is not the only way to settle your debts. As your agent, we can negotiate with your financial institution and make a optional settlement of your repayment. Or you may choose Civil Rehabilitation which settles your debts without losing your house. And, for the person hard-pressed to repay debts, there is the installment plan of repayment with a reduced principal and with cuts both in the interest and in the amount of the damages claimed for delayed payment. Also, in case you borrowed money from consumer finance at a very high interest rate (an annual interest rate in excess of 18 percent), and moreover, the transaction has endured for about 7years, you might have already finished repaying your debts because of a reduction in its amount (※) due to the Interest Limitation Law. And, if your transaction has endured for over 7 years, you may have made excess payment and actually over-paid consumer finance, in which case, you might get back some of the money. Thus there are several ways to make a settlement of obligation . If you consult us, we will find the best way for you. The first hour of counsultation is free.

※ The way to decrease your debt:
  Annual interest rates are effectively limited by the Interest Limitation Law to 18 percent for less than \1,000,000, and 20 percent for less than \100,000 (Article I of this law).

Bakruptcy	Civil Rehabilitaion Act	Specific Mediation	Voluntary Liquidation
Categories of Person
Debtor in excessive debt	Debtor with possibility of excessive debt	Debtor possibly unable to repay debts	All kinds of debtor
Legal Basis
Bankruptcy Act	Civil Rehabilitaion Act	The Law about specific conciliation procedures in court to encourage adjustment for specific debtors	None
Participation of Court
Yes	Yes	Yes	None
The main feature and Merit
No debt after the decision for immunity from responsibility is made, in return for losing your main property.	Your amount of debt is compressed to one-fifth and you save your house. Also, you agree in principle to repay by installment in 3 years.	We negotiate with each creditor to get them to agree to a repayment plan which cuts the installment and the delinquency charge.	As your agent, we negotiate a plan of repayment with each creditor. We negotiate to make a settlement contract which cuts interest and the delinquency charge from the unsettled debt after calculation according to the Money Lending Law.
Demerit
You lose your main property (land, house). During the procedure of bankruptcy there are some restrictions of qualification such as, you cannot work for an insurance company or you cannot be an Executive Officer. Also, the bankrupt person`s name and address are published in an official gazette. However, if you are in a debt which is fraudulent or because of gambling the decision for immunity from responsibility cannot be made (according to a list of causes blocking immunity).	The court examines your solvency of debt. People who do not have a continuous income cannot use this program.	If you have made excess payment you need to ask for a lawyer or judicial scrivener to get back the money.	The court does not participate. Instead, we as judicial scrivener get a clear grasp of the amount of debt and we negotiate with each creditor to make the most profitable settlement contract for you. The part which we have to play in this is wide; therefore, the fee to the debtor is higher in comparison.
Standard Necessary Term
About 6 months after starting the process	About 8 months after starting the process	About 6 months after starting the process	About 6 months after starting the process
Standard Cost(inculeds actual cost)
\150,000 〜	\250,000 〜	Not available at this time	\90,000 〜

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