Bankruptcy Act

A person that is dissatisfied with an order on a petition for bankruptcy claim assessment may file an action to oppose the order (referred to below as an "action to oppose a bankruptcy claim assessment") within an inalterable period of one month after the day on which the person received the service of the order.

An action to oppose a bankruptcy claim assessment is subject to the jurisdiction of the bankruptcy court.

The court of first instance with which an action to oppose a bankruptcy claim assessment is filed may transfer by its own authority the suit pertaining to the action to oppose the bankruptcy claim assessment to the district court prescribed in Article 5, paragraph (1) (or the district court prescribed in Article 5, paragraph (2) if there is no appropriate court that corresponds to the court prescribed in Article 5, paragraph (1)) notwithstanding the provisions of the preceding paragraph when it finds it necessary to do so in order to avoid substantial detriment or delay when the bankruptcy court's jurisdiction over the bankruptcy case is based on only the provisions of Article 5, paragraph (8) or (9) (including cases in which the bankruptcy court has accepted the bankruptcy case transferred to it pursuant to the provisions of Article 7, item (iv) and the acceptance of the transferred case is based on only the provisions of Article 7, item (iv), sub-item (b) or (c)).

In an action to oppose bankruptcy claim assessment, all of the denying or disputing parties must stand as defendants if the action is filed by the bankruptcy creditor that holds the denied or disputed bankruptcy claim, and the bankruptcy creditor must stand as a defendant if it is filed by a denying or disputing party.

Oral argument for an action to oppose bankruptcy claim assessment may not be commenced until the period stated in paragraph (1) has expired.

If two or more actions to oppose bankruptcy claim assessment are pending with respect to the same bankruptcy claim concurrently, oral arguments and judicial decisions of these actions must be made in a consolidated manner. In this case, the provisions of Article 40, paragraphs (1) through (3) of the Code of Civil Procedure apply mutatis mutandis.

A judgment rendered with regard to an action to oppose a bankruptcy claim assessment approves or changes the order on the petition for bankruptcy claim assessment except when the action is dismissed as unlawful.

If an action relating to a denied or disputed bankruptcy claim is pending at the time of commencement of bankruptcy proceedings, when a bankruptcy creditor seeks the finalization of the amount, etc. of the claim, the creditor must file a petition for taking over the action, designating all of the denying or disputing parties as the opponents.

The provisions of Article 125, paragraph (2) apply mutatis mutandis to the petition stated in the preceding paragraph.

With regard to a denied or disputed bankruptcy claim accompanied by an enforceable title of obligation or final judgment, the denying or disputing party may assert an objection only through the court proceedings that the bankrupt may carry out.

If an action relating to the denied or disputed bankruptcy claim prescribed in the preceding paragraph is pending at the time of commencement of bankruptcy proceedings, when the denying or disputing party stated in that paragraph seeks to assert an objection under the provisions of that paragraph, the denying or disputing party must take over the action in which the bankruptcy creditor that holds the bankruptcy claim in question stands as their opponent.

The provisions of Article 125, paragraph (2) apply mutatis mutandis to the assertion of an objection under the provisions of paragraph (1) or the taking over of the action under the provisions of the preceding paragraph, and the provisions of Article 126, paragraphs (5) and (6) and the preceding Article apply mutatis mutandis to the cases referred to in the preceding two paragraphs. In these cases, the phrase "the period stated in paragraph (1)" in Article 126, paragraph (5) is deemed to be replaced with "an inalterable period of one month from the last day of the ordinary period for investigation, or special period for investigation for the denied or disputed bankruptcy claim or from the ordinary date of investigation or special date of investigation for the claim".

When the assertion of an objection under the provisions of paragraph (1) or the taking over of the action under the provisions of paragraph (2) has not taken place within the period prescribed in Article 125, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, if the denying or disputing party is a bankruptcy creditor, it is deemed that no objection under Article 118, paragraph (1), Article 119, paragraph (5), or Article 121, paragraph (2) has been made (including as applied mutatis mutandis pursuant to Article 121, paragraph (7) or Article 122, paragraph (2)), and if the denying or disputing party is a bankruptcy trustee, it is deemed that the bankruptcy trustee has approved the bankruptcy claim in question.

A judgment made upon an action concerning the finalization of a bankruptcy claim is effective against all bankruptcy creditors.

If an action to oppose bankruptcy claim assessment against an order on a petition for bankruptcy claim assessment is not filed within the period prescribed in Article 126, paragraph (1) or is dismissed, the order has the same effect as the final and binding judgment against all bankruptcy creditors.

When the bankruptcy estate has been enriched from an action concerning the finalization of a bankruptcy claim (including an order on a petition for bankruptcy claim assessment), the bankruptcy creditor that asserted an objection, as a holder of the claim on the estate, may claim a reimbursement of the court costs to the extent that the bankruptcy estate has been enriched.

Proceedings for petition for bankruptcy claim assessment which are pending at the time of the closing of bankruptcy proceedings are to be closed if the closing of bankruptcy proceedings results from an order of reversal of the order commencing bankruptcy proceedings or an order of discontinuance of bankruptcy proceedings, which has become final and binding, and is to continue to be pending if the closing of bankruptcy proceedings results from an order of termination of bankruptcy proceedings.

If bankruptcy proceedings are closed as a result of an order of termination of bankruptcy proceedings, when an order on a petition for bankruptcy claim assessment is made after the closing of bankruptcy proceedings, an action to oppose bankruptcy claim assessment may be filed pursuant to the provisions of Article 126, paragraph (1).

An action to oppose bankruptcy claim assessment or an action to take over pursuant to the provisions of Article 127, paragraph (1) or Article 129, paragraph (2), which is pending at the time of closing of bankruptcy proceedings and in which a bankruptcy trustee stands as a party, is not to be subject to a continuance, notwithstanding the provisions of Article 44, paragraph (4), if the closing of bankruptcy proceedings results from an order of termination of bankruptcy proceedings.

An action to oppose bankruptcy claim assessment, which is pending at the time of closing of bankruptcy proceedings and in which a bankruptcy trustee does not stand as a party, is to be concluded if the closing of bankruptcy proceedings results from an order of reversal of the order commencing bankruptcy proceedings or an order of discontinuance of bankruptcy proceedings, which has become final and binding, and continues to be pending if the closing of bankruptcy proceedings results from an order of termination of bankruptcy proceedings.

An action taken over pursuant to the provisions of Article 127, paragraph (1) or Article 129, paragraph (2) which is pending at the time of closing of bankruptcy proceedings and in which a bankruptcy trustee does not stand as a party is subject to a continuance if the closing of bankruptcy proceedings results from an order of reversal of the order commencing bankruptcy proceedings or an order of discontinuance of bankruptcy proceedings, which has become final and binding, and is to continue to be pending if the closing of bankruptcy proceedings results from an order of termination of bankruptcy proceedings.

If an action is subject to a continuance pursuant to the provisions of the preceding paragraph, the provisions of Article 44, paragraph (5) apply mutatis mutandis.

With regard to a claim for tax, etc. and a claim for a fine, etc., the provisions from Subsection 1 (excluding Article 115) through the preceding Subsection do not apply.

When the cause of a claim (excluding claims for a fine, petty fine, and court costs for a criminal case) filed under the provisions of Article 114 (in the case of a claim for a foreign tax subject to mutual assistance, a decision of implementation of mutual assistance) is a disposition against which a request for review, an action (excluding a criminal action; the same applies in the following paragraph), or any other appeal may be filed, a bankruptcy trustee may assert an objection with regard to the filed claim by a means of filing an appeal.

In the case referred to in the preceding paragraph, if an action relating to the filed claim is pending at the time of the commencement of bankruptcy proceedings, a bankruptcy trustee that seeks to assert an objection prescribed in that paragraph must take over the action in which the bankruptcy creditor that holds the filed claim stands as the opponent. The same applies when a case relating to the bankruptcy estate is pending before an administrative agency with regard to the filed claim at the time of the commencement of bankruptcy proceedings.

The assertion of an objection under the provisions of paragraph (2) or the taking over of the action under the provisions of the preceding paragraph must be performed within an inalterable period of one month after the day on which a bankruptcy trustee came to know the fact of the filing prescribed in paragraph (2).

The provisions of Article 124, paragraph (2) apply mutatis mutandis to a claim filed pursuant to the provisions of Article 114, and the provisions of Article 128, Article 130, Article 131, paragraph (1), and paragraph (3) of the preceding Article apply mutatis mutandis to cases in which the assertion of an objection under the provisions of paragraph (2) or the taking over of the action under the provisions of paragraph (3) has taken place.

The court must convoke a creditors' meeting upon the petition of any of the persons stated in the following items; provided, however, that this does not apply when the court finds it inappropriate to convoke a creditors' meeting taking into consideration the number of known bankruptcy creditors and other circumstances:

a bankruptcy trustee;

the creditors' committee prescribed in Article 144, paragraph (2); or

a bankruptcy creditor that holds a bankruptcy claim that accounts for one-tenth or more of the amount of total claims held by known bankruptcy creditors as estimated by the court.

The court may convoke a creditors' meeting when the court finds it appropriate even when the petition stated in the main clause of the preceding paragraph is not filed.