Debt recovery advice

Service 03 · Debt Recovery

An honest assessment of what your unpaid invoices can realistically recover

Unpaid commercial invoices carry their own pressures — the sum outstanding, the time already elapsed, and the question of whether pursuing the matter will cost more than it returns. The advice starts with that question and works forward from there.

← Return to Home

§ 01

What This Service Provides

A written view of your recovery prospects, including cases where pursuing the matter may not be worthwhile

The engagement produces a written assessment of your position as a creditor — what the documentation supports, whether a limitation period is approaching or has passed, and what the practical prospects of recovery are given the debtor's circumstances so far as they can be established.

This includes cases where the cost of formal steps would exceed the sum owed, or where the debtor's financial position makes recovery unlikely regardless of the legal position. That is stated in the assessment, not withheld.

Where correspondence before formal steps is appropriate, that is drafted as part of the engagement. Where the amount qualifies for the small claims route, that is explained, including what it requires and what it does not.

§ 02

The Situation

Unpaid invoices raise several questions that are difficult to answer without reviewing the documents

Situation A

The documentation is incomplete

Where the original contract did not clearly set out payment terms, or where the invoices were not formally acknowledged, the position as a creditor is more complicated. The review examines what the documents support and where the gaps are.

Situation B

Time has passed and the limitation period may be relevant

Commercial claims in Japan are subject to limitation periods. If the relevant period has passed, formal recovery steps may not be available regardless of the merits. The assessment identifies whether this applies and whether any steps were taken that affect the calculation.

Situation C

The debtor's circumstances are uncertain

A judgment that cannot be enforced produces no return. Where there is reason to doubt the debtor's ability to pay even if ordered to do so, the assessment takes account of that in considering whether formal steps are proportionate.

Situation D

The sum may qualify for a simpler route

Smaller commercial debts may qualify for the small claims procedure (少額訴訟), which is faster and less costly than ordinary proceedings. Where this applies, it is worth knowing before committing to a more involved process.

§ 03

The Approach

Review of what the documents establish, followed by a practical assessment of what to do with that

The review begins with the invoices, the contract if one exists, and any correspondence — including any acknowledgment of the debt by the debtor, whether explicit or implied. What these documents establish determines what is available.

From that basis, the assessment covers the limitation position, the practical recovery prospects, and the available routes. Where correspondence before formal steps is advisable, it is drafted as part of the engagement — not as a separate item.

The assessment is written. It states what the documents support and what they do not, what the available routes are with realistic expectations for each, and where relevant, a recommendation on whether pursuing the matter is proportionate.

Term Key

Limitation Period (消滅時効)

The period within which a claim must be brought before the right to do so expires. For commercial claims in Japan, the standard period is five years from when the creditor knew of the right to claim, or ten years from when the right arose — whichever is earlier under the Civil Code as amended in 2020. Certain actions by the debtor can interrupt the period.

Small Claims Procedure (少額訴訟)

A simplified court procedure for claims up to ¥600,000. The matter is generally decided in a single hearing, making it faster and less costly than ordinary civil proceedings. It is not available for all claim types, and a defendant may object to its use, in which case the matter proceeds by the ordinary route.

Demand Letter (内容証明郵便)

A formal written demand sent by registered post with a record maintained by Japan Post. It serves as evidence that the demand was made and the date it was sent. Often a practical step before formal proceedings, and in some circumstances relevant to the limitation period calculation.

§ 04

The Process

How the engagement proceeds

1

Initial description of the matter

Use the contact form to describe the debt briefly — the amount outstanding, approximately how long the invoices have been unpaid, and what documentation exists. A reply will confirm whether the matter falls within scope and what to send.

2

Documents submitted

The invoices, any contract, payment records, and correspondence are sent for review. Any acknowledgment of the debt by the debtor — however informal — is worth including, as it may affect the limitation position.

3

Assessment prepared (two weeks)

The documentation is reviewed and the assessment prepared. This takes approximately two weeks. Where correspondence is appropriate, it is drafted during this stage.

4

Written assessment and correspondence delivered

The written assessment is provided, together with any drafted correspondence. Questions on the written content can be raised once you have had time to review it.

§ 05

Fee Structure

Debt Recovery Advice

Fixed Fee Engagement

¥26,000 JPY · fixed fee

Documentation review establishing the creditor's position and any limitation period considerations

Written assessment of recovery prospects — including cases where cost would exceed the sum owed

Drafted correspondence where appropriate, including demand letter if the matter warrants it

Explanation of the small claims route where the amount qualifies, with what it requires

Follow-on questions on the written output included

Circumstances

This fixed fee applies to a single debt matter involving one debtor and a manageable set of documents. Where the matter involves multiple debtors or an unusually complex document history, the scope is confirmed before the engagement begins.

Timeline

Approximately two weeks from receipt of documents

§ 06

Scope and Limits

What this service covers and what it does not

The service covers advice up to the point of formal proceedings. If the assessment leads to a decision to file a small claim or commence ordinary proceedings, that is a separate engagement and would need to be agreed separately. The advisory service ends with the written assessment and any follow-on questions.

Where the assessment finds that recovery is unlikely to be worthwhile — because the cost exceeds the sum, because the debtor's financial position makes enforcement impractical, or because the limitation period has passed — that is the honest output of the engagement. It is a useful result even when it is not the one expected.

The assessment is conducted in English. The original documents may be in Japanese; this should be noted at the outset so the scope can be confirmed.

§ 07

Commitment

What you can expect from this engagement

The scope is agreed before the work begins. If the matter involves complexity beyond what this fixed-fee service covers — for example, a series of related debtors or documents requiring translation — that is confirmed before the engagement starts, not partway through.

The assessment will reflect the documents as they are. A creditor position that is weaker than anticipated is not withheld from the written output. A clear view of a difficult position is more useful than an encouraging reading that does not hold under scrutiny.

Making contact carries no obligation. The initial exchange is intended to establish whether what you need falls within the scope of this service, and to set out what would be required to begin.

§ 08

Next Steps

How to proceed

Step 1

Use the contact form to describe the matter — the debtor, the amount, how long the invoices have been outstanding, and what documents you have. A brief summary is sufficient.

Step 2

A reply confirms what to send and whether the matter is within scope. The documents are submitted and the review begins within the agreed timeframe.

Step 3

The written assessment is delivered, together with any drafted correspondence. It sets out what the documents support, the recovery prospects, and the available routes. Questions on the content are addressed once you have reviewed it.

§ 09

Describe the outstanding invoices

If you have commercial invoices that have remained unpaid and you are not certain whether pursuing them is practical, a written assessment based on the documentation is a reasonable starting point. The contact form takes a few minutes. There is no obligation in making contact, and the initial exchange will confirm whether what you need is within scope.

Send an Enquiry

§ 10

Other Services

Other available services

Service 01

Employment Documentation Review

Review of employment contracts, work rules and internal policies. Marked-up output with explanations. Three to four weeks. ¥35,000.

View details

Service 02

Commercial Dispute Advisory

Position assessment for companies in disagreement with a supplier, customer or partner. Options with cost estimates per route. Two to three weeks. ¥38,000.

View details