Bankruptcy Act

A debtor who is an individual (or the bankrupt after an order commencing bankruptcy proceedings is issued; the same applies below in this Section, except for paragraph (4)) may file a petition to the bankruptcy court for grant of discharge within a period from the day on which a petition to commence bankruptcy proceedings is filed until one month has elapsed since the day on which an order commencing bankruptcy proceedings becomes final and binding.

When the debtor referred to in the preceding paragraph (referred to below as the "debtor" in this Section) is unable to file a petition for grant of discharge within the period prescribed in that paragraph due to grounds not attributable to them, they may file the petition only within one month after the grounds cease to exist.

When filing a petition for grant of discharge, the petitioner must submit a list of holders of dischargeable claims stating the particulars specified by the Rules of the Supreme Court; provided, however, that if it is not possible to submit a list of holders of dischargeable claims at the same time as filing the petition, it is sufficient to submit the list without delay after filing the petition.

If the debtor has filed a petition to commence bankruptcy proceedings, the debtor is deemed to have filed a petition for grant of discharge at the same time as filing the petition; provided, however, that this does not apply if the debtor has manifested their intention to the contrary upon filing the petition to commence bankruptcy proceedings.

When a petition for grant of discharge is deemed to have been filed pursuant to the provisions of the main clause of the preceding paragraph, the list of creditors referred to in Article 20, paragraph (2) is deemed to be the list of holders of dischargeable claims referred to in the main clause of paragraph (3).

If the debtor has filed a petition for grant of discharge, they may not file a petition referred to in Article 218, paragraph (1) or a petition to commence rehabilitation proceedings.

If the debtor has filed any of the petitions stated in the following items, they may not file a petition for grant of discharge until the orders specified in the respective items become final and binding, notwithstanding the provisions of paragraph (1) or (2):

a petition referred to in Article 218, paragraph (1):an order dismissing the petition; and

a petition to commence rehabilitation proceedings:an order dismissing the petition, order of discontinuance of rehabilitation proceedings, or order of disconfirmation of the rehabilitation plan.

If a petition for grant of discharge is filed and an order of discontinuance of bankruptcy proceedings under the provisions of Article 216, paragraph (1) is issued, an order of discontinuance of bankruptcy proceedings made under the provisions of Article 217, paragraph (1) has become final and binding, or an order of termination of bankruptcy proceedings under the provisions of Article 220, paragraph (1) is issued, until a judicial decision on the petition becomes final and binding, it is not allowed to enforce a enforcement, provisional seizure, provisional disposition or disposal of foreign tax delinquency based on a bankruptcy claim, or exercise a general statutory lien or auction on the grounds of a right of retention (excluding a right of retention under the provisions of the Commercial Code or the Companies Act) against the bankrupt's property (referred to below as "enforcement, etc. based on a bankruptcy claim" in this Article), or to file a petition for an asset disclosure procedure or procedure for acquiring information from a third party based on a bankruptcy claim or make a collection of national tax delinquency (excluding a disposal of foreign tax delinquency) against the bankrupt's property, and any procedure for enforcement, etc. or disposition based on a bankruptcy claim already initiated against the bankrupt's property and asset disclosure procedure and procedure for acquiring information from a third party based on a bankruptcy claim already initiated against the bankrupt is to be suspended.

When an order of grant of discharge becomes final and binding, the procedure for enforcement, etc. based on a bankruptcy claim or disposition, and the asset disclosure procedure and procedure for acquiring information from a third party based on a bankruptcy claim which have been suspended pursuant to the provisions of the preceding paragraph cease to be effective.

In the case referred to in paragraph (1), the prescription period does not expire with regard to a bankruptcy claim stated in each of the following items, until the day on which two months have elapsed since the day following the day on which the order specified in the respective items becomes final and binding:

a claim stated in each item of Article 253, paragraph (1):an order on a petition for grant of discharge; and

a bankruptcy claim other than the claim stated in the preceding item:an order dismissing a petition to grant discharge or order of non-grant of discharge.

The bankrupt must cooperate in investigations on the particulars prescribed in the preceding paragraph conducted by the court or investigation conducted by a bankruptcy trustee pursuant to the provisions of that paragraph.

When the court has made an order to specify the period referred to in the preceding paragraph, it must give a public notice of the period and give a notice of the period to a bankruptcy trustee and known bankruptcy creditors.

The period referred to in paragraph (1) must be at least one month from the day on which the public notice made under the provisions of the preceding paragraph becomes effective.

The court issues an order to grant a discharge if the bankrupt does not fall under any of the cases stated in the following items:

for the purpose of harming the creditors, the bankrupt has concealed or damaged the property that belongs or should belong to the bankruptcy estate, disposed of the property in a manner disadvantageous to creditors or conducted any other act that would unduly reduce the value of the bankruptcy estate;

for the purpose of delaying the commencement of bankruptcy proceedings, the bankrupt has assumed a debt under extremely disadvantageous conditions or purchased goods through a margin transaction and disposed of them under extremely disadvantageous conditions;

for the purpose of giving a special benefit to a specific creditor to whom they are indebted or for harming other creditors, the bankrupt has conducted an act concerning provision of security or extinguishment of debt which is not included in the scope of the debtor's obligation in terms of the act itself or the means or time of performance of the act;

the bankrupt has significantly reduced their property or assumed excessive debt through overspending, gambling, or any other speculative act;

during the period from the day one year before the day on which a petition to commence bankruptcy proceedings is filed until the day on which an order commencing bankruptcy proceedings is made, knowing a fact that would be a cause of the commencement of bankruptcy proceedings exists, the bankrupt has acquired property through a marginal transaction by fraudulent means so as to make the other party believe that the fact does not exist;

the bankrupt has destroyed, forged, or altered books, documents or any other articles concerning the status of their business and property;

the bankrupt has submitted a false list of holders of dischargeable claims (including a list of creditors that is deemed to be a list of holders of dischargeable claims pursuant to the provisions of Article 248, paragraph (5); the same applies in paragraph (1), item (vi) of the following Article);

the bankrupt has refused to give an explanation or given a false explanation in the investigation conducted by the court in bankruptcy proceedings;

the bankrupt has obstructed the duties of a bankruptcy trustee, temporary administrator, bankruptcy trustee representative, or temporary administrator representative through fraudulent means,;

if any of the grounds stated in the following sub-items (a) through (c) exist, a petition for grant of discharge is filed within seven years from the day specified in sub-item (a), (b), or (c), respectively:

an order to grant a discharge became final and binding:the day on which the order to grant a discharge became final and binding;

a rehabilitation plan for rehabilitation for salaried workers, etc. prescribed in Article 239, paragraph (1) of the Civil Rehabilitation Act (Act No. 225 of 1999) was carried out:the day on which the order of confirmation of the rehabilitation plan became final and binding;

an order of discharge prescribed in Article 235, paragraph (1) of the Civil Rehabilitation Act (including as applied mutatis mutandis pursuant to Article 244 of that Act) became final and binding:the day on which the order of confirmation of the rehabilitation plan related to the order of discharge became final and binding; or

the bankrupt has violated the obligation prescribed in Article 40, paragraph (1), item (i), Article 41, or Article 250, paragraph (2) or any other obligation prescribed by this Act.

Notwithstanding the provisions of the preceding paragraph, even if the bankrupt falls under any of the cases stated in the items of that paragraph, the court may issue an order to grant a discharge when it finds it appropriate to grant a discharge taking into consideration the developments that led to issuing an order commencing bankruptcy proceedings and all other circumstances.