I can not return debt … I want to go bankrupt ….
However, personal bankruptcy can not be done for free.
We refer to the court fee for bankruptcy as a prepayment, and the court pays as needed to investigate whether your debt exemption is appropriate.
In other words, the advance payment is the cost to be paid to the court, apart from the attorney’s expense paid to the requested attorney, when the bankruptcy proceeds.
This time, we will introduce in detail the “amount of prepayment that varies depending on the procedure”, “when do you prepare by”, and “how to handle when the prepayment can not be prepared”.
table of contents
- How much is the amount of prepayment paid to the court?
- Prepayment for bankruptcy is a high transfer prepayment due to the procedure
- When do you pay the advance payment for your own bankruptcy? In the case of Tokyo and Osaka
- When to pay an advance payment in bankruptcy proceedings in the Tokyo District Court
- When to pay an advance payment in bankruptcy proceedings in Osaka District Court
- How to pay a prepayment of ¥ 200,000 to make a bankruptcy
- If you go to bankruptcy proceedings in the Tokyo District Court, you can pay a prepayment in splits
- The advance payment of the Osaka District Court is accumulated to a lawyer! Bankruptcy proceedings will begin when the reserve is paid
- Tokyo and Osaka are different! What happens if you can not pay the advance payment?
- If the Tokyo District Court can not pay the advance payment, the petition for personal bankruptcy will be dismissed
- If you can not pay the advance payment to the Osaka District Court, you can withdraw your bankruptcy application
- You can rely on a lawyer or the law terrace when you can not pay a bankruptcy advance payment
- If you ask a lawyer, the debt repayment will stop! We use the money that was repaying for prepayment
- Recommended for those who can not pay in advance and legal fees at the same time
- To use the legal terrace you have to pass the examination
- Disadvantages of bankruptcy using the legal terrace
- How to Sell Your Property and Pay Prepayments Before Proceeding with a Bankruptcy
- 【Summary】 Payment of advance payment for bankruptcy is mandatory! Let’s utilize lawyer and law terrace well
How much is the amount of prepayment paid to the court?
There are three ways to go to bankruptcy, and the amount of prepayment required for each is different.
The differences between the three procedures are as follows:
- Simultaneous abolition case
When it is judged that there is no property enough to spend the expense “200,000 yen” required for personal bankruptcy.
It is called “simultaneous abolition” to abolish the proceedings at the same time as initiating the bankruptcy proceedings.
- Small money case
A person who promotes bankruptcy by using a lawyer as an agent is applicable.
There is a property (house, land, car, etc.) that can spend “200,000 yen” for bankruptcy proceedings and there is a need for property investigation.
If the reason for debt is gambling or excessive shopping etc., it may not be possible to allow a personal bankruptcy to be exempted.
- Administration case (mainly corporate procedure)
The person who goes to bankruptcy procedure without asking a lawyer corresponds.
In the case of an individual, bankruptcy proceedings costs of ¥ 200,000 may be spent, or personal bankruptcy may not be permitted.
Next, let’s look at the breakdown of the prepayments involved in the three procedures.
Prepayment for bankruptcy is a high transfer prepayment due to the procedure
The table below summarizes the amount and breakdown of the advance payment for each abolition, small-scale administration case and administration case that we introduced earlier.
|procedure||Prepayment amount and breakdown ※ In the case of Tokyo District Court|
|Simultaneous abolition||Prepayment amount of money 16,184 yen
|Small sum of money||Prepayment amount of money 22,220 yen
|Assets||Prepayment amount of money 522,150 yen
The reason why the small-income administration case and the administration case become expensive is because, as you can see from the table, the advance payment for handover has occurred.
The advance payment means the compensation and processing costs paid to the bankruptcy trustee.
A bankruptcy trustee is a person who has legal status and is always appointed by the court in the case of a trustee (small sum) case.
The operations performed by the bankruptcy trustee are as follows.
- Bankruptcy Property Investigation
Investigate whether there is an asset that can be paid to creditors.
- Sell the bankruptcy property and convert it to money
For housing, land, vehicles with appraisal price of over 200,000 yen, insurance with surrender return of over 200,000 yen, and other goods with value over 200,000 yen.
- Investigate the amount of debt and pay the creditors fairly
Check the amount of debt from each creditor and make a fair dividend payment commensurate with the amount of debt.
- Investigation of disclaimer
Investigate bankruptcy proceedings to see if there is no reason to be exempt from debt repayment.
Ex.) Hidden property, repayment only to some creditors, selling property and drastically reducing dividends to creditors, debt due to gambling etc.
The bankruptcy trustee performs these investigations from the decision to start the bankruptcy procedure to the decision to close the procedure.
※ In the simultaneous abolition case, it is determined that there is no need for property investigation and disclaimer at the time of filing, and the bankruptcy procedure is terminated, so the bankruptcy trustee business is also unnecessary.
It takes a lot of time and effort to investigate, but it is not good for a bankruptcy trustee to do the work of trustee without compensation.
The transfer prepayment system can be said to be a system that purports to secure a certain amount of money in advance in order to prevent the absence of bankruptcy trustees who carry out important work.
When do you pay the advance payment for your own bankruptcy? In the case of Tokyo and Osaka
Payment of advance payment is transferred to deposit account which bankruptcy trustee basically appointed appoints.
This is also for the purpose of managing a bankruptcy trustee’s property claiming bankruptcy.
A typical transfer method may be a method of transferring directly to a designated account, or a method of asking a lawyer who has made a request to transfer a deposit as a proxy.
So when is the timing of payment?
When to pay an advance payment in bankruptcy proceedings in the Tokyo District Court
When you go to bankruptcy proceedings in the Tokyo District Court, the timing to transfer the advance payment is the period from the start of the bankruptcy proceedings to the opening of the first creditors’ meeting .
The exact date will be directed by the bankruptcy trustee.
Generally, it will be within 2 to 4 months from the decision to start the bankruptcy proceedings.
When to pay an advance payment in bankruptcy proceedings in Osaka District Court
If you claim a bankruptcy under the Osaka District Court, you must pay an advance payment within six months of the bankruptcy petition .
Please note that bankruptcy proceedings will not start unless paid.
How to pay a prepayment of ¥ 200,000 to make a bankruptcy
Those who have the property that the creditor can pay the dividend, and those who have the debt due to gambling (including stock and FX) will proceed with the proceedings as a small money case. ※ In the case of individual bankruptcy, it is mostly treated as a case of a small sum of control property and corporation bankruptcy.
From the contents so far, it turned out that it is not necessary to hold the advance payment at the time of the petition.
However, you can not go bankrupt and get your debt to Chara without paying a large advance payment anyway.
How can I pay a prepayment that costs at least 200,000 yen? ※ The amount of advance payment is somewhat different depending on the property situation, debt situation of each district court, individual.
If you go to bankruptcy proceedings in the Tokyo District Court, you can pay a prepayment in splits
The Tokyo District Court can make an advance payment in installments.
Up to four payments. If the advance payment is 200,000 yen, you will pay 50,000 yen a month for 4 months.
However, there are almost no courts that adopt a prepayment installment system other than the Tokyo District Court.
Be sure to check with the court or the lawyer who requested the payment method of the advance payment.
The advance payment of the Osaka District Court is accumulated to a lawyer! Bankruptcy proceedings will begin when the reserve is paid
The Osaka district court said that it would pay the advance payment within six months of the complaint.
In the past six months, it seems that there are many cases where deposit money is deposited with the lawyer who requested it.
It is necessary to reserve at least about 34,000 yen a month , considering that the advance payment will be made until the last moment of the payment.
However, depending on the lawyer you requested and your income, the method of funding will differ.
Please consult with a lawyer in advance to check how much the monthly deposit is required.
Tokyo and Osaka are different! What happens if you can not pay the advance payment?
If you make a prepayment at the Tokyo District Court, you need at least 50,000 yen a month.
Even in the Osaka district court, about 34,000 yen a month.
If you can not pay the advance payment, you can not proceed with the bankruptcy procedure.
In short, you can not get bankruptcy and be exempted from debt unless you can pay the advance payment .
The point to be noted here is the timing of the advance payment for the Tokyo District Court and the Osaka District Court.
The Tokyo District Court pays the full amount of advance payment after deciding to start bankruptcy proceedings.
In Osaka district court , before decision of the bankruptcy procedure start, within six months from the claim is due date to pay advance payment.
Now, let’s compare the difference between the case where the advance payment can not be paid and the case after the start of the bankruptcy procedure.
If the Tokyo District Court can not pay the advance payment, the petition for personal bankruptcy will be dismissed
The Tokyo District Court must pay a full prepayment in up to four installments after deciding to start bankruptcy proceedings.
In fact, after the decision to start bankruptcy proceedings and until the decision to exempt from debt (disclaimer), those who filed for bankruptcy are subject to various restrictions as “bankruptcy” .
The restrictions imposed on bankruptcy are as follows:
- Job restriction
You can not take a certain job during bankruptcy proceedings.
- Mail is forwarded
Mail addressed to the bankrupt is to be forwarded to the bankruptcy trustee.
Unnecessary mail will be received from the bankruptcy trustee for the purpose of the bankruptcy procedure.
- Without permission from the court, long trips and moving are difficult
In principle, it is not permitted to leave the residence without the permission of the court during bankruptcy proceedings.
The disadvantage is particularly great for bankrupts who are in restricted occupations.
The inability to pay in advance means that bankruptcy proceedings have not progressed and they have been “always bankrupt.”
Furthermore, once the bankruptcy proceedings have begun, you can not withdraw your claim.
If you do not pay the advance payment, the court will dismiss your claim for bankruptcy.
※ Reference: Bankruptcy Law Article 120
It may differ depending on the court when and when it will be dismissed, but at a minimum, the period from the decision to start the procedure to the meeting of the creditors will probably not be dismissed.
If you do a bankruptcy proceedings in the Tokyo District Court, we recommend that you consult a lawyer before making a complaint, including whether you can pay an advance payment.
If you can not pay the advance payment to the Osaka District Court, you can withdraw your bankruptcy application
On the other hand, Osaka District Court will start the procedure if payment is made within six months after the claim.
You can withdraw your claim on your own before the bankruptcy proceedings begin.
You will also be asked to withdraw your claim from the court if six months of probation have passed.
There is no such restriction as Tokyo District Court, but let’s make a complaint in consultation with the requested lawyer so that Osaka District Court can do the same plan accumulation.
You can rely on a lawyer or the law terrace when you can not pay a bankruptcy advance payment
“Now, repayment of debt is a car of fire for the family budget. Some debts are still arrears. How should I pay for the expenses necessary for personal bankruptcy?
If you ask a lawyer, isn’t it likely that it will cost you more than the advance payment? “
Are you not troubled like this?
Many people may be concerned about money, but actually it is best to ask a lawyer to pay a deposit.
If you have difficulty in preparing a lawyer’s fee, you can also use the legal terrace, which will provide cost assistance.
If you ask a lawyer, the debt repayment will stop! We use the money that was repaying for prepayment
If you ask a lawyer for a procedure for bankruptcy, you will be able to use your money to pay for advance payments and legal expenses, as it will stop paying off your debt.
- Consultation / request to a lawyer
- Attorney sends a notice of acceptance to each creditor
- A creditor who receives a notification of acceptance ceases to require reminders by law
- When the reminder stops, the repayment also stops!
- By stopping the repayment, it is possible to turn the monthly repayment money into a prepayment. You can pay in advance for payment and attorney’s fee
People in the small-income case may feel a bit more hurdle because they will have to make parallel payments or payment of advance payments and attorneys’ fees.
However, depending on the lawyer you ordered, you should be able to ask for advice on how to pay according to your income situation, regarding the prepayment installment period and the deposit period.
First of all, it is good to ask a lawyer who is consulting for free, how to pay the advance payment and the lawyer’s expenses, etc.
Consultation fee is free, and you can feel free to consult if it is Namura Law Office that can respond to installments.
For more details on how to pay attorneys’ fees, see “How to pay attorneys fees” .
Recommended for those who can not pay in advance and legal fees at the same time
If you go through a bankruptcy procedure and become a small money case, you will not be able to proceed if you do not pay the advance payment and legal fees.
However, both have insufficient income, and it is impossible to pay both the advance payment and the lawyer’s expenses even if it is in installments. It can be difficult to pay for.
At that time, the Japanese Legal Support Center “Law Terrace” provides assistance for expenses.
We will introduce a lawyer for those who can not consult and who can not pay the lawyer’s fees, and will renew the lawyer’s expenses.
Since the cost of the replacement can be repaid in installments of 5,000 to 10,000 yen monthly, the burden is not too big.
Consultation is free, so you can feel free to inquire.
The important thing here is that the legal terrace will support the expenses “limited to the lawyer’s expenses” .
Please be aware that we will not accept consultations that we can not pay the advance payment.
Attention when using legal terrace
The law terrace is an organization that provides legal counsels, etc. with information on legal troubles, and it is important that you understand that the law terrace itself does not provide legal advice.
※ See) law terrace
To use the legal terrace you have to pass the examination
Although it is a law terrace that relies on the difficulty of paying the advance payment and the cost of the cow at the same time, it is necessary to pass a strict examination to receive the assistance of the law terrace.
There are two criteria for examination: “Availability of legal terrace cost assistance (income standard)” and “Asset for which legal terrace expense assistance is available (property standard)” and both criteria are satisfied. Without it, you can not receive cost assistance.
Availability of legal terrace cost assistance (income standard)
- Applicants’ and spouse’s amount of income from the income meets the standard.
- The income of the family living with the applicant will be added to the applicant’s income as long as they can contribute to the household budget.
Property (cost of property) where expense support of legal terrace is available
- If the applicant and spouse have assets such as real estate (except for home) and securities, the total of their market value, cash, deposits and savings must meet the criteria.
- If there are medical expenses and educational expenses to be paid in the future, a considerable amount will be deducted.
Those who meet these criteria are likely to receive cost assistance from the legal terrace.
Disadvantages of bankruptcy using the legal terrace
In terms of attorneys’ fees for personal bankruptcy, the law terrace feels that the merit is great, but there are disadvantages as well.
- The experts introduced from the law terrace are not necessarily the ones they can trust.
- The legal terrace takes a very long time to use for review, and the bankruptcy proceedings are expected to be prolonged.
If you avoid the first disadvantage, you should ask the law firm that you want to use instead of having a lawyer introduced from the law terrace, “Can you use the law terrace?” I will.
Large law firms are likely to have a lawyer or judicial scrivener who has a contract with the law terrace.
The second disadvantage can not be avoided, so let’s ask for it to take time.
How to Sell Your Property and Pay Prepayments Before Proceeding with a Bankruptcy
Finally, I will show you how to sell your property and pay an advance payment.
For example, if you own the property corresponding to the following, you may be able to pay a prepayment.
- Funded insurance policy surrender value
- Sale of owned cars
- Other valuable items
If there is a property other than these that you feel you do not need, you may want to sell them and use it for prepayment.
“If you sell your property before and after your bankruptcy, isn’t your debt immunity permitted?”
It seems that there are people who think like this, but whether or not the disclaimer is permitted is judged by what you have spent on the money you got for disposal.
In personal bankruptcy proceedings, if you dispose of a property of more than ¥ 200,000 in the two years before the application, you must declare it. ※ In the case of insurance surrender value, declaration is necessary regardless of the amount.
If it is determined that the disposition was done for the following purpose, there is a possibility that debt exemption will not be granted.
- Purpose to significantly reduce the property to pay out to creditors
- Purpose to repay only some creditors ※ also includes loan agreement between relatives
- To use for gambling and play
There is no problem in that the money obtained by disposal is used for living expenses and personal bankruptcy expenses instead of these purposes.
Debt immunity may not be permitted depending on the goods, timing, and amount of money to be sold, so we recommend that you always consult with a lawyer if you do not dispose of it yourself.
【Summary】 Payment of advance payment for bankruptcy is mandatory! Let’s utilize lawyer and law terrace well
The following is a summary of the prepayments for the bankruptcy proceedings.
- Prepayment is necessary when it becomes a management property / small sum management case (from at least 200,000 yen)
- The timing of prepayment payments varies by court
- The advance payment will be paid by installment payment to the attorney.
- The advance payment must be paid because it is a court fee (If you can not pay the advance payment, you can not bankrupt yourself)
- If you use the legal terrace, you will be able to receive attorney’s fee support (you can’t make a deposit payment)
- It is possible to sell the property prior to filing for bankruptcy and use it for the cost of bankruptcy (do not sell the property after filing)
Those who can not return debt or who are uneasy about whether they can pay their own bankruptcy expenses.
People who want to go into bankruptcy by gambling or excessive shopping, stock or FX debt, but may become a trustee incident due to non-exemption reasons.
All concerns will always be resolved when you consult a lawyer.
In particular, if you have a disclaimer, you may want to leave it to an experienced specialist who can cope with personal revitalization including the possibility of being unable to go bankrupt.
Law firm strong in debt consolidation
- Earth Law Office
- Namura Law Office