Arbitrary arrangement is for debtors such as consumer finance and card companies to negotiate “debt reduction”, “interest cut” and “increase in repayment frequency” to reduce the monthly repayment burden. It is one of the ways.
If you ask a lawyer or judicial scrivener to arrange anything, in most cases, the settlement period will be about one and a half to three months.
Arbitrary arrangement does not go through the court, unlike personal rebirth or personal bankruptcy, and negotiates how to repay only the debt you want to arrange, so it is possible for family members and friends not to have debt or to arrange arbitrarily. It is the biggest advantage.
However, since the optional consolidation does not mean that the debt is exempted, the condition is that there is a stable income that can be repaid even after the consolidation.
- I am having trouble with debt repayment, and eventually my debt is increasing every month.
- I do not want to bar my family to have a debt.
- I do not want to go out of bankruptcy because I am secret to my family, but I can not get out of debt hell as it is.
- I have heard the word “arbitrary arrangement,” but I do not know what to do and I am uneasy.
As such, if there is no one who can worry about money every month for repayment of debts and you can talk about debts, why not think about voluntary arrangement.
Whether you decide to organize or are still lost, first let us know the general flow of the voluntary arrangement and imagine the procedure to reconciliation.
This time, I will explain the flow of the procedure of voluntary arrangement.
table of contents
- The overall flow of negotiated content and procedures
- Flow of procedure of voluntary realignment until settlement is reached
- 1. Consult with a lawyer or judicial scrivener and ask them to arrange arbitrarily
- 2. Notification of receipt and suspension of repayment
- 3. Payment of attorney’s fees or judicial scrivener expenses
- 4. Debt Settlement and Negotiation
- Flow of voluntary arrangement procedures after the settlement is reached
- 5. Preparation of a written settlement (agreement) after the settlement is concluded
- 6. Period from repayment start to settlement to repayment and notes
- Leave the statement when repayment by transfer
- If there is a delay in repayment check if there is any late interest
- Informing family not to send mail to home after repayment so as not to barre
- 【Summary】 It is important to understand your debt before making any arrangements
The overall flow of negotiated content and procedures
There are roughly four negotiating contents of voluntary arrangement.
- Reduce principal
Reduce your current debt balance
- Future interest cut
Cut interest from settlement to completion
- Elapsed interest cut
Get the interest cut during the period when the repayment has stopped, from asking a lawyer or a judicial scrivener to making a settlement
- Negotiation of repayment period (division number)
Negotiations to repay the remaining debt in 36 to 60 times (the number of repayments increases, so the monthly repayment amount can be reduced)
We will ask lawyers and judicial scriveners to do these negotiations, and it will take six steps before the settlement is reached.
- Consult with a lawyer or judicial scrivener, request
- Delivery notification and suspension of repayment
- Payment of attorneys’ fees etc.
- Negotiation and finalization of debt
- Settlement reached
- Start repayment after settlement
And it is said that it will take about one and a half to three months for the settlement to take place, but if it takes more than that, it is thought that the attitude of the creditors to the negotiations is affecting.
It is safe to ask a lawyer or judicial scrivener who is rich in debt consolidation experience as there are cases where one company does not respond to negotiations despite asking for multiple debt consolidation.
Let’s look at the specific flow from “1. Consult with a lawyer or judicial scrivener” to “6. Start repayment after settlement”.
Flow of procedure of voluntary realignment until settlement is reached
First of all, I will explain the steps to the settlement.
Follow the process from asking a lawyer to the settlement, and proceed with your discretion.
1. Consult with a lawyer or judicial scrivener and ask them to arrange arbitrarily
You need to consult in advance when asking a lawyer or a judicial scrivener to arrange arbitrarily.
Basically, you should make a direct visit and consult after making a telephone reservation .
This is what has been decided under Article 3 of the Japan Bar Association’s “Rules on Discipline on Debt Consolidation Case Processing” .
※ Because you don’t fall into debts that have already been paid off (overpayment request etc.), you can request them without coming to the office.
Consultation fees vary depending on the lawyer / judicial scrivener who requests it, and there are also places that offer consultation free of charge.
In addition, there is a case where a lawyer office that you want to request is far away, or you are conducting a free consultation on a business trip for people who can not go out due to injury or illness.
Ask a lawyer or judicial scrivener who suits you.
If you make a reservation for consultation by phone, be sure to check your debt status as a preparation before going to consultation.
- Where is the borrower
Includes consumer finance, bank card loans, credit cards, shopping loans, debts from relatives and friends and debts that have been paid off.
- How much is each debt
Total current debt balance and total debt balance.
※ As judicial scrivener can not deal with debt more than 1,400,000 yen per 1 company, let’s ask lawyer.
- What is the monthly repayment amount
Monthly debt repayment amount and monthly repayment amount for each debt.
- When did you start borrowing?
Depending on the time of debt, it may be possible to request an overpayment.
- Is it a debt with a guarantor or guarantor
In the case of a debt with a joint guarantor, the guarantor is obliged to repay.
In bank card loans, there are cases where a guarantor is attached to a consumer finance and credit sales company, and if you arrange arbitrarily, creditors move from the bank to the guarantor, so be careful.
- Which debt you want to organize and what debt you want to keep
For example, cars and expensive home appliances can be held down when organizing shopping loans.
If you are in need of foreclosures, you need to think of a method.
Since it is premised that repayment can be made after repayment, it would be better to understand the situation of debt as fine as possible in order to have you negotiate with the amount that can be repayable.
※ If you can not understand it, some lawyers and judicial scriveners will ask you for investigation, so please keep in mind only the name of the borrower.
In addition, there is also a method to do the procedure on the spot, if you decide to request a voluntary arrangement as a result of the consultation.
Documents required for the procedure may be given at the time of telephone reservation for consultation, but will be introduced as it was described on the homepage of the famous Adire Law Office by TV commercial.
One driver’s license, insurance card, passport, etc. ※ In the case of business trip consultation, both sides copy.
- List of creditors
Write down all debts, guarantee debts, mortgages, car loans, and borrowings from acquaintances of your relatives as far as you can see. You should also know when you are borrowing.
If you create Adaire’s creditor list referring to it, you can create it without excess or deficiency of information
- Household balance situation
Proof of income (you should also know the income of your spouse) · Rent · food expenses · utility expenses and other household balances should be written in a range that you can understand.
※ It is information necessary to negotiate settlements with discretionary settlement, with repayment amount that is not muri in life.
- Loan card / credit card
All cards not used.
※ Let’s stop use after request to fix amount of debt. In addition, if a lawyer or judicial scrivener is formally requested and a notification of acceptance is sent to a creditor, the information under debt consolidation will be registered with the credit information agency and the card will become unusable.
A seal other than a killer whale grouper.
※ It becomes necessary as we exchange contracts when it becomes formal request as a result of consultation.
In addition to these, there are three documents that will be helpful if you have them.
- Debt contract
The transaction history disclosure request necessary for the optional arrangement becomes smooth.
- Transaction history (statement etc.)
You can see the repayment status and the remaining debt.
If you have a history of about 2 years, it will be helpful for repayment ability.
※ Required documents vary depending on the lawyer / judicial scrivener who requests it.
And when it comes to make a formal request to the lawyer and judicial scrivener who consulted, a written contract is created.
As the commission agreement stated the debt consolidation method (optional consolidation, overpaid bill etc) requested and lawyer’s expenses (starting fee, calculation method of remuneration, necessary expenses), we were convinced of expenses etc. Sign and seal above.
2. Notification of receipt and suspension of repayment
Once you have signed a delegation agreement in Procedure 1, a lawyer / judicial scrivener sends a notification of acceptance to the creditor.
The notice of acceptance indicates that the obligor’s name, address, date of birth and the agent (lawyer, judicial scrivener) who has been requested.
Creditors who have received the notification of acceptance will be prohibited from contacting the client and related parties in the future, as well as any collection activities, under Article 21 Clause 1 9 (Restriction of collection activities) of the Money Lending Business Act.
The obligor, etc. consigns the processing of the debt related to the loan based on the contract of the loan to a lawyer, a lawyer corporation, a judicial scrivener or a judicial scrivener corporation (hereinafter referred to as “lawyer etc.” in this issue), or Conduct necessary civil court proceedings in court, call a debtor, etc. and send a telegram to the debtor, etc. even if there is no justifiable reason when a lawyer, etc. or a court gives notice of that in writing. In addition, although it was requested that the debt be repaid by a method of transmitting or visiting using a facsimile machine or using a call from a debtor etc. Require repayment of the debt.
Quotation source: Article 21 Clause 1 9 of the Money Lending Business Act (regulation of collection act)
If you ask a lawyer etc. to sign up for a delegation contract, and if you are asked to repay the debt despite sending a notice of acceptance, it will be an illegal act, so let’s report it immediately to the requested lawyer etc.
When debt repayment method to arrange is bank withdrawal
If the debt you want to clean up is repaid by a bank debit, you will need to file a bankruptcy stop with the bank, not the creditor. Before stopping withdrawal, let’s make the bank account balance zero. In addition, let’s stop the automatic withdrawal procedure at the bank if the utility charges and rent are the same accounts as debts.
3. Payment of attorney’s fees or judicial scrivener expenses
The Delegation Agreement contains items that describe legal fees and judicial scrivener costs.
The main cost items are as follows.
- Start money
Expenses incurred at the time of request regardless of the success or failure of the result
- Settlement fee
Remuneration to pay once a settlement is reached
- Reduction reward
Reimbursement to be paid when debts are reduced due to interest repayment negotiations, etc.
- Overpayment fee
Remuneration on overpayments as a result of interest rate restriction repayment calculation
Basically, you will pay these expenses, but there are also lawyers and judicial scriveners who claim that you can get a free start money and no start money.
Some people think that judicial scriveners are cheap and the cost for lawyers is high, but not all.
Below is a table of researching the costs of some lawyers and judicial scriveners and comparing the cost of doing some sort of arrangement.
|Ask a lawyer|
|Ask a judicial scrivener|
|Expense market||If you ask for one company for 3 to 50,000 yen * 2 companies or more at once, the price per company may be cheaper.|
|Feature||Judicial scriveners often cost per company.
※ Successful reward occurs when money comes back by overpayment request.
* There is no proxy for debt consolidation of a total of 1.4 million yen or more.
※ If you develop a lawsuit with the creditor, you can do it on behalf of the simplified trial.
If you get a settlement fee or a reduction fee, you won’t know the exact amount until all negotiations have been completed.
It is important to make sure that there are no doubts about the costs when exchanging a delegation agreement.
4. Debt Settlement and Negotiation
So far, it was the process of asking a lawyer or judicial scrivener.
Once you have a delegation agreement, all you have to do is wait for a lawyer or judicial scrivener to reach you until the negotiations are complete.
During this time, lawyers and judicial scriveners are doing the following:
- Request a transaction history disclosure to the creditor and investigate the remaining debt.
After investigating, decide whether to arrange arbitrarily or to use another method.
- Find out if there was a loan at an interest rate that violated the interest rate restriction law.
There is also a possibility that it will become an overpaid bill from arbitrary arrangement.
- Investigate whether there is a debt that has been established.
If you have a debt that has been delinquent and has not repayed, you may not have to repay the debt by using the prescription. ※ Please refer to “Method of debt aging” for detention of debt .
After confirming these details, the amount of debt that will ultimately have to be repaid will be fixed.
The main negotiations with the creditors are how to repay the debt.
The goal is to have the creditor approve the debtor to repay the debt with an amount that can be paid monthly.
In this negotiation, if it is judged that the creditors do not accept any reclassification or if the reclassification can not repay the month due to lack of income, other debt consolidation methods (individual rebirth and self bankruptcy) It must be considered.
In addition, there are very few cases in which a lawsuit is filed by a creditor during the procedure of voluntary consolidation.
It seems that this is often the case for the creditors to consider the terms of the settlement fairly in the court, thinking that they want to prevent the settlement negotiations from being prolonged and that they are not satisfied with the terms of repayment.
The creditor side thinks that it is basically possible to settle under the terms of the voluntary clearance negotiations, as it is more advantageous to repay the interest even if the interest is cut rather than the money loaned by self-bankruptcy etc. please.
There may be a lawsuit if the time to settlement is over three months
If negotiations proceed smoothly, the settlement will be completed in one and a half to three months from the request.
If it takes three months or more, it may shift to other debt consolidation or may lead to a lawsuit.
※ If a court decision results in a lawsuit, forced enforcement may result in seizing a salary or bank account. Remember that discretionary consolidation is just a negotiation towards a settlement with a creditor, so you can not settle with a repayment plan that is convenient for you.
Flow of voluntary arrangement procedures after the settlement is reached
Negotiations with creditors are repeated, and if both parties are convinced, a settlement will be reached.
If a settlement is reached, it is common to create a “Consent Form (Consent)” .
Once the settlement is signed, repayment will start with the agreed settlement content.
The problem here is when you can not repay the settlement .
Basically, it seems that you will be billed for the remaining debt, but if you can not pay it, there is a high possibility that you will shift to personal reproduction and self-bankruptcy.
In that sense as well, it is preferable to have a settlement with the amount that can be repaid securely every month.
Let’s take a look at the specific settlement check points and the points to note when repayments have started.
5. Preparation of a written settlement (agreement) after the settlement is concluded
Make sure to confirm the terms of the settlement once the settlement has been prepared.
Depending on the lawyer and judicial scrivener who requested it, a settlement document may be sent by mail.
We will sign and seal after confirming whether the content described in the settlement form is a condition that you can reasonably agree with.
The figure below is an example of a settlement.
Be especially careful to read the arrangements when you can not repay.
The percentage of delayed losses depends largely on the creditors who made the settlement.
There is a pattern that takes 20% or more in some cases where delay losses do not occur, so even if you are confident that you will not be behind at the time of the settlement, you need to be sure to check.
If the repayment is delayed and you are billed collectively and you can not pay, be sure to sign and seal the settlement, noting that it will lead to personal revitalization and personal bankruptcy.
6. Period from repayment start to settlement to repayment and notes
The period of voluntary repayment varies depending on the remaining amount of debt, but it is often a long-term installment repayment of 3 to 5 years (36 to 60 times).
Let’s complete the repayment smoothly, paying attention to the following three points.
Leave the statement when repayment by transfer
Although the settlement has been made, it is not that there are no troubles during repayment or repayment.
Let’s leave the proof of repayment properly so as not to be trouble by “repaying” and “not repaying” later.
In case of transfer repayment, it is safe to issue a statement and keep it until it is paid off.
If there is a delay in repayment check if there is any late interest
If you are late for repayment, there is also a possibility that late interest has occurred, so we will repay including late interest after confirmation.
You should always check this also when making the final repayment.
It is possible that you may assume that you are fine because you are not prompted by a creditor, and you may end up with a large amount of delayed damages and eventually becoming insolvent.
However, since you are asked to repay the debt, of course it is manners to keep the due date.
It is also important to devise not to forget the repayment date by using the alarm function of the smartphone.
Informing family not to send mail to home after repayment so as not to barre
It seems that the post-payment contract return may be mailed to your home or sent to a lawyer / judicial scrivener office who is an agent.
Even though I had paid back to my family without paying off until completion, there were no former and no children if all the documents had arrived after the return.
Contact the creditors and consult with them just before repayment.
【Summary】 It is important to understand your debt before making any arrangements
The most important part in the flow of the voluntary arrangement procedure is “to know the total amount of your own debt” and “to accurately tell lawyers and judicial scriveners the amount that you can repay every month.”
You can do these two by yourself at the stage before asking for the optional arrangement.
By knowing the total amount of debt and the amount that can be repaid, you may be able to draw a specific picture of your life after voluntary arrangement.
Let’s review the total amount of your debt and the amount you can repay before you have to take a debt consolidation method, such as personal rehabilitation or bankruptcy.
The period for registering information with a credit information agency through voluntary arrangement is five years.
During that period, new loan and credit card contracts can not be made, but overdue information will be registered for 5 years even if the debt is overdue.
※ While delinquent, delinquent information will be kept for a long time.
It takes three to five years to complete the work after optional arrangement.
There is no need to repay debt if there are no repayments.
If you are concerned about debt repayment and get nervous, why not just consult a specialist?