Bankruptcy Act

Regardless of whether before or after the commencement of bankruptcy proceedings, a person that has conducted any of the following acts for the purpose of harming creditors is punishable by imprisonment for ten years or less or a fine of ten million yen or less, or both, when an order commencing bankruptcy proceedings against the debtor (in the case of bankruptcy of estate, the estate, and in the case of bankruptcy of trust property, the trust property; the same applies in the following paragraph) becomes final and binding. The same applies to a person that has knowingly served as the other party to the act stated in item (iv) when an order commencing bankruptcy proceedings becomes final and binding:

an act of concealing or damaging the debtor's property (in the case of bankruptcy of estate, property that belongs to the estate, and in the case of bankruptcy of trust property, property that comes under the trust property; the same applies below in this Article);

an act of faking the transfer of the debtor's property or assumption of debts;

an act of altering the existing status of the debtor's property, thereby reducing its value; or

an act of disposing of the debtor's property in a manner disadvantageous to creditors, or an act of assuming debts disadvantageous to creditors by the debtor.

Beyond what is prescribed in the preceding paragraph, the same also applies to a person that has acquired the debtor's property or has had a third party acquire the property without the consent of a bankruptcy trustee or any other legitimate grounds, knowing that an order commencing bankruptcy proceedings has been issued or an order for temporary administration has been issued against a debtor for the purpose of harming creditors

Regardless of whether before or after the commencement of bankruptcy proceedings, with regard to debt to a specific creditor, if a debtor (in the case of bankruptcy of estate, including an heir, administrator of the estate, liquidator of the estate, or executor, and in the case of bankruptcy of trust property, including a trustee, etc.; the same applies below in this Article) has conducted an act concerning the provision of security or extinguishment of debt that 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 for the purpose of harming other creditors, and an order commencing bankruptcy proceedings has become final and binding, the debtor is punishable by imprisonment for not more than five years or a fine of not more than five million yen, or both.

When a bankruptcy trustee, temporary administrator, bankruptcy trustee representative, or temporary administrator representative has committed an act in breach of their duties and caused financial loss to creditors for the purpose of promoting their own interest or the interest of a third party, or inflicting damage on creditors, the person is punishable by imprisonment for not more than ten years or a fine of not more than ten million yen, or both.

When a bankruptcy trustee or temporary administrator is a corporation, the provisions of the preceding paragraph apply to the officers or employees who perform the duties of a bankruptcy trustee or temporary administrator.

A person that , has refused to give an explanation or has given a false explanation in violation of the provisions of Article 40, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article), Article 230, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) or Article 244-6, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both. The same applies to a person that has refused to give an explanation or has given a false explanation in violation of the provisions of Article 40, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) as applied mutatis mutandis pursuant to Article 96, paragraph (1).

The provisions of the first sentence of the preceding paragraph also apply when a representative, agent, employee, or other worker (referred to below as a "representative, etc." in this paragraph and paragraph (4)) of a person stated in Article 40, paragraph (1), items (ii) through (v) or a person that was a person stated in these items, or of a person stated in each item of Article 230, paragraph (1) (excluding an heir) or a person that was a person stated in item (ii) or (iii) of Article 230, paragraph (1) (excluding an heir), or of a person stated in each item of Article 244-6, paragraph (1) or a person that was a person stated in these items (each of those persons is referred to below as a "person with a duty to explain" in this paragraph), in connection with the business of the person with a duty to explain has refused to give an explanation or has given a false explanation in violation of the provisions of Article 40, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article), Article 230, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article), or Article 244-6, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article). The same applies when a representative, etc. of a person with a duty to explain has refused to give an explanation or has given a false explanation in connection with the business of the person with a duty to explain, in violation of the provisions of Article 40, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) as applied mutatis mutandis pursuant to Article 96, paragraph (1).

The provisions of the first sentence of paragraph (1) also apply when the bankrupt has refused an inspection under the provisions of Article 83, paragraph (1) (including as applied mutatis mutandis pursuant to Article 96, paragraph (1)), when an order commencing bankruptcy proceedings is issued against the estate and a person stated in Article 230, paragraph (1), item (ii) or (iii) has refused an inspection under the provisions of Article 83, paragraph (1), or when an order commencing bankruptcy proceedings is issued against the trust property and the trustee, etc. has refused an inspection under the provisions of Article 83, paragraph (1) (including as applied mutatis mutandis pursuant to Article 96, paragraph (1)).

The provisions of the first sentence of paragraph (1) also apply when a representative, etc. of the bankrupt's subsidiary company, etc. prescribed in Article 83, paragraph (2) (including one that is deemed to be the bankrupt's subsidiary company, etc. under paragraph (3) of that Article; the same applies below in this paragraph) has refused to give an explanation under the provisions of paragraph (2) of that Article (including as applied mutatis mutandis pursuant to Article 96, paragraph (1); the same applies below in this paragraph) or has given a false explanation, or has refused an inspection under the provisions of Article 83, paragraph (2) in connection with the business of the bankrupt's subsidiary company, etc.

When the bankrupt (in the case of bankruptcy of trust property, a trustee, etc.) has refused to submit a document pursuant to the provisions of Article 41 (including as applied mutatis mutandis pursuant to Article 244-6, paragraph (4)) or has submitted false documents to the court, the person is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both.

Regardless of whether before or after the commencement of bankruptcy proceedings, for the purpose of harming creditors, a person that has spoliated, forged, or altered books, documents, or any other objects concerning the status of a debtor's business and property (in the case of bankruptcy of the estate, property that belongs to the estate, and in the case of bankruptcy of trust property, property that comes under the trust property) is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both when an order commencing bankruptcy proceedings against the debtor (in the case of bankruptcy of the estate, the estate, and in the case of bankruptcy of trust property, the trust property) becomes final and binding. The same applies to a person that has spoliated, forged, or altered books concerning the closed bankruptcy estate pursuant to the provisions of Article 155, paragraph (2).

In an interrogation concerning a petition to commence bankruptcy proceedings (excluding those filed by a person other than the debtor) or petition for grant of discharge, when a debtor has refused to give an explanation with regard to the particulars for which the court has required an explanation, or has given a false explanation, the person is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both.

A person that has obstructed the duties of a bankruptcy trustee, temporary administrator, bankruptcy trustee representative, or temporary administrator representative by the use of fraudulent means or force is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both.

When a bankruptcy trustee, temporary administrator, bankruptcy trustee representative, or temporary administrator representative (referred to as a "bankruptcy trustee, etc." in the following paragraph) has accepted, solicited, or promised to accept a bribe in connection with their duties, the person is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both.

In the case referred to in the preceding paragraph, when the bankruptcy trustee, etc. has agreed to perform an act in response to an unlawful request, the person is punishable by imprisonment for not more than five years or a fine of not more than five million yen, or both.

If a bankruptcy trustee or temporary administrator is a corporation, when its officer or employee who performs the duties of a bankruptcy trustee or temporary administrator has accepted, solicited, or promised to accept a bribe in connection with the duties of a bankruptcy trustee or temporary administrator, the person is to be punished by imprisonment for not more than three years or a fine of not more than three million yen, or both. The same applies if a bankruptcy trustee or temporary administrator is a corporation, and its officer or employee has had the bankruptcy trustee or temporary administrator accept or solicit or promise to accept a bribe in connection with the duties of the bankruptcy trustee or temporary administrator.

In the case referred to in the preceding paragraph, when the officer or employee has agreed to perform an act in response to an unlawful request, the person is punishable by imprisonment for not more than five years or a fine of not more than five million yen, or both.

If a bankruptcy creditor or bankruptcy creditors' representative or their agent, officer or employee has accepted, solicited, or promised to accept a bribe while agreeing to perform an act in response to an unlawful request in connection with the exercise of a voting right on the date of a meeting of creditors or exercise of a voting right by voting by document, etc. prescribed in Article 139, paragraph (2), item (ii), the person is punishable by imprisonment for not more than five years or a fine of not more than five million yen, or both.

In the cases referred to in the preceding paragraphs, a bribe accepted by the offender or by the bankruptcy trustee or temporary administrator that is a corporation is to be confiscated. If the whole or part of the bribe cannot be confiscated, an amount equivalent to its value is to be collected.

A person that has given, offered, or promised to offer a bribe prescribed in paragraph (1) or (3) of the preceding Article is to be punished by imprisonment for not more than three years or a fine of not more than three million yen, or both.

A person that has given, offered, or promised to offer a bribe prescribed in paragraph (2), (4), or (5) of the preceding Article is punishable by imprisonment for not more than five years or a fine of not more than five million yen, or both.

A person that has forcibly demanded a meeting with the bankrupt or their relative or any other person, or intimidated any of these persons for the purpose of forcing the bankrupt (limited to a bankrupt who is an individual, or in the case of bankruptcy of the estate, an heir; hereinafter the same applies in this Article) or their relative or any other person to pay a bankruptcy claim (after the closing of discharge proceedings, limited to those discharged; the same applies below in this Article), or for the purpose of forcing the bankrupt's relative or any other person to guarantee a bankruptcy claim is punishable by imprisonment for not more than three years or a fine of not more than three million yen, or both.

The crimes referred to in Article 265, Article 266, Article 270, Article 272, and Article 274 are governed by the provisions of Article 2 of the Penal Code (Act No. 45 of 1907).

The crimes referred to in Article 267 and Article 273 (excluding paragraph (5)) are governed by the provisions of Article 4 of the Penal Code.

The crime stated in Article 273, paragraph (5) also applies to a person that has committed the crime referred to in that paragraph outside Japan.

When a representative of a corporation, or an agent, employee, or any other worker of a corporation or individual has committed a violation of Article 265, Article 266, Article 268 (excluding paragraph (1)), Articles 269 through 272, Article 274 or 275 in connection with the business or property of the corporation or individual, not only is the offender punishable but also the offender's corporation or individual is punishable by a fine prescribed in the respective Articles.