In cases where you are operating a company or doing business in a personal business, it is not unusual to have debts of tens of millions of yen or hundreds of millions of yen with personal guarantees attached.
And, if the business goes bad, the cash flow becomes difficult and finally the repayment to the financial institution will be delayed. In such a case, even if the obligation is reorganized, the possibility of paying out the remaining obligation is low. Therefore, if you have a large debt and it is difficult to continue repaying, we recommend you to file a self-insolvency to the court.
The merit of self-bankruptcy is to stop collecting acts from creditors from financial institutions etc. at the time of submitting self-bankruptcy to the court. And if the court is granted immunity, it will be exempted from repayment of debt and the outstanding debt will be 0 yen.
As a disadvantage, it is necessary to relinquish all assets except living expenses for the time being. Also, it is not possible to use a credit card because it is registered in the blacklist of the credit information agency, and it becomes impossible to make a new debt from the financial institution.
Among those who have had a lot of debts with difficulty in repaying, I think that there are also people that most of the debts are mortgage loans, some mortgage loans are difficult to repay, and finally they are delinquent. And even if we need debt consolidation, I think that there are many people who absolutely do not want to let go of housing.
For such a person, we recommend that you use special mortgage loan by way of debt consolidation called individual revitalization. Not everyone can use this mortgage special rule, but it is possible to reduce the monthly repayment amount by extending the mortgage repayment period.
For example, if the mortgage repayment period is 20 years, by extending the repayment period to 25 years, it is possible to reduce the monthly mortgage repayment amount.
Regarding the special mortgage regulations for individuals, people who purchase houses during a good period of economic times, where house prices are soaring, tend to use. In many cases, repayment of a mortgage becomes difficult due to a depression and a decrease in salary.
However, since individual laws have special mortgage laws, debt restructuring is possible without letting go of housing. First of all I would like to recommend that you consult a lawyer.
I think that there are many people who have paid hundreds of thousands of yen for Internet shopping using a credit card and can not prepare money for the account debiting of the next month and many credit card companies are asking for repayment.
Also, I think that some people have shopped a lot by credit card revolving payment, and finally the debt balance is accumulated like a snowman, and some people have fallen into repayment difficulties.
For such people, I would like to recommend delegation as a way of debt consolidation. If it is voluntary arrangement, there is a merit that it is not necessary to let go of cash-cash assets such as owned houses and owned cars for repaying debts like self-bankruptcy.
Arbitrary arrangement requires negotiations between a lawyer and a financial institution such as a credit card company, and it is necessary for both parties to agree on voluntary arrangement. Arbitrary sorting is a negotiation that does not go through the court, so it will take time for several months but if you can agree on both sides you can get the debt to be compressed to the extent that the debt can be fully paid in three years.
I would like to encourage lawyers to consult with lawyers about arbitrary pricing if they have debts of hundreds of thousands of yen to millions of yen and fall into difficult repayment.