Provisional attachment of assets as a means of debt collection
By Seiichi Yoshikawa, Koga & Partners Legal
As I wrote in a former article, it is often advisable for a creditor to secure a court order for provisional attachment on debtor’s assets before commencing a legal action for debt collection (main action). The attachable assets include real estate, personal property, ships or transportation vessels and the debtor’s claim to a third party. The creditor commences the procedure by filing an application together with documentary evidence to prove prima facie that it has a valid claim to the debtor and the necessity for provisional attachment.
A judge in charge, after reviewing the application and the evidences, meets the creditor’s attorney and asks questions, if any, about the case and the documents filed. If the judge is satisfied that the case is prima facie established, he/she determines the amount of security money that the creditor must deposit. In a simple case, the amount is usually one third of the value of the assets to be attached but can vary depending on the weight of evidence to support the validity of the claim. When the creditor files evidence of payment of the security deposit, a formal order is issued and the debtor is notified. The whole procedure usually takes only a few days. The security deposit is refunded if the creditor wins a main suit for collection of the claim, or with the debtor’s consent (e.g. when the case is settled).
Seiichi Yoshikawa, Senior Partner
Koga & Partners Legal, Tokyo, Japan
T: +8i 33 578 86 81
Seiichi Yoshikawa is a senior partner of Koga &. Partners and has handled many interna-tional litigation and arbitration cases including debt collection. He has served as Vice President of the Japan Federation of Bar Associations and Councillor of the International Bar Association.
Koga & Partners is based in Tokyo, Japan. Its practice areas include international litigation and arbitration, finance, competition law, M&A, media law and general corporate matters.
pulished: March 2014