Claim Collection, Management and Preservation (Collateral)

1. Optimal Method for Preserving Claims
 If you are conducting business with a new business partner, or engaging in a transaction that requires a large amount of upfront costs (such as manufacturing costs or purchase costs), or if there are any initial concerns about the financial condition of your business partner, before entering into such transaction, it is important to consider the most suitable measures to preserve your claims. Claims can be preserved in various ways, such as establishing various security interests over assets and real estate, security deposits, offsetting transactions, etc. However, it is important to prepare and execute the agreement most suitable to your situation, including basic agreements with your business partner. Upon making such selection, it is important to choose a method that is effective even after the initiation of bankruptcy procedures, in case the business partner goes bankrupt, by considering each business relationship individually.
Based on our experience with numerous bankruptcy cases, Oh-Ebashi LPC & Partners can assist you in arranging the ideal measures to ensure the preservation of your claims through preparing contracts and negotiating the execution thereof. Our firm has deep practical experience in special measures for claim preservation, such as through collective chattel mortgage (asset-based lending, ABL), collateral for intellectual property (such as patents), and collateral for receivables (including schemes using trusts and other financial instruments.).

2. Prompt and Ideal Claim Collection
 When engaging in claim collection, a prompt response is essential. If you spend too much time deciding and preparing for the collection, no matter the method of collection that you choose, collection of such debt will be no more than pie in the sky. On the other hand, it is necessary to carefully consider what method of collection is the best option by taking into account the amount of credit, nature of the transaction, cost of collection, and so on.
Oh-Ebashi LPC & Partners has ample experience in collection of receivables, involving both big and small transactions. By taking advantage of our expertise in this area, we can offer the best means of claim collection in each scenario (such as litigation, provisional seizure, provisional disposition, demand notice, compulsory execution and other legal procedures, as well as voluntary repayment, etc.). Furthermore, when working on a claim collection case, multiple lawyers will work in a team to implement procedures for collection of the debt as quickly as possible.

Our Newsletter related to this practice area
 (1)You Cannot be Completely Safe Even with Guarantee - A Case Showing Risk of Avoidance Concerning Guarantee
 (2)Collection of Claims where a Debtor's Real Estate is Occupied by a Creditor - About the Supreme Court Decision dated December 14, 2017 in which the Court Held that Real Estate Could be Subject to a Commercial Lien
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 (4)Case study on whether bringing an action for debt collection in an out-of-court restructuring proceedings constitutes an abuse of rights - Judgement of the Tokyo District Court on February 13, 2018 -
 (5)Impact of amendments to the law of succession on practices for business succession, debt management and collection, etc., and points to note therefor - Part 1
 (6)Impact of Amendments of the Civil Law on the Liquidation of Claims (No. 1)
 (7)Compulsory Execution and Bankruptcy - Judgment of the Second Petty Bench of the Supreme Court on April 18, 2018~
 (8)Right to Demand Rescission of a Fraudulent Act under the Amended Law of Obligations
 (9)Court decision that additional payment of obligations by a third-party debtor to the creditor enforcing a seizure of assets, made after such third party debtor's payment of its obligation to the debtor undergoing such seizure, is not subject to the exercise of the right of avoidance (hinin-ken) under Article 162(1) of the Bankruptcy Act once the commencement of bankruptcy proceedings is approved by the court with respect to the debtor undergoing seizure of its assets.- Judgment of the Third Petty Bench of the Supreme Court on December 19, 2017
 (10)Outline of Amendments to the Civil Execution Act and Management of Claims
 (11)Impact of Amendments to the Law of Succession on Practices for Business Succession, Debt Management and Collection, etc., and Points to Note Therefor - Part 2
 (12)Supreme Court Judgment Ruling that Retention of Ownership Prevails Over a Transfer Security Interest (jyoto tanpo) on Collective Movable Property - Judgment of the Supreme Court on December 7, 2018 (Kinyu Homu Jijyo No. 2106, p. 4)
 (13)Points to Note when Trading with a Company Facing Risks ⸺ Referring to the Osaka High Court Decision of December 20, 2018
 (14)Claim collection against delivered goods in case of bankruptcy of the purchaser - Specific example of statutory liens for sales of chattels -
 (15)Exercise of the right of set-off in case of bankruptcy of a company - referring to the Fukuoka High Court decision on September 21, 2018 -
 (16)Avoidance of an Act in the Interest of a Bankruptcy Estate After Lapse of Six Years from the Relevant Transaction - Referring to the Tokyo District Court Decision on July 20, 2016
 (17)Agreement on Offsetting and the Retroactive Effect of Offsetting - Referring to the Judgment of the Amagasaki Branch of the Kobe District Court on July 20, 2016 and the Judgment of the Okayama District Court on January 18, 2018
 (18)Important Points and Actual Cases of Claim Collection from Struggling Business Partners
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 (20)Despite Successful Creation of a Security Interest... - Risk of Avoidance (hinin) when Creating a Security Interest in a Company in Crisis, with Reference to the Judgment of May 15, 2019 by the Wakayama District Court
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 (22)The Latest Precedent Concerning Seizure of Claimand Interruption of Prescription - Rendered by the Supreme Court on September19, 2019 -
 (23)Points to Consider for Claim Management Practice (2) - Points toConsider for Assignment of Claims/Assignment of Claims for Security Based onthe Amended Law of Obligations
 (24)Response to Requests from Business Partners for a Payment Deferral
 (25)Personal Property Security Act of the Philippines
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 (27)Investigation of Hidden Assets by a Bankruptcy Trustee
 (28)Whether or not a COVID 19 Subsidy for Businesses can be Seized - Ruling Rendered by the Itami Branch of the Kobe District Court on November 19, 2020 -
 (29)Pitfalls in Retaining Ownership - A Review of the Judgment by the Supreme Court on March 10, 2009
 (30)Regarding the New System to Acquire Real Estate Information Starting on May 1, 2021
 (31)To What Extent Can We Rely on the Collateral Function of Offsetting? - A Recent Judgment Rendered by the Supreme Court that Provides the First Example of the Application of Article 72, Paragraph 2, Item 2 of the Bankruptcy Act -
 (32)Utilization of Filing of Petition for Bankruptcy Proceedings by a Creditor and Order for Temporary Administration - What to Do upon Misconduct or Concealment of Assets by a Debtor
 

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