Article 15(1)When a debtor is unable to pay debts, the court, upon petition, commences bankruptcy proceedings by an order pursuant to the provisions of Article 30, paragraph (1).

(2)When a debtor has suspended payments, the debtor is presumed to be unable to pay debts.

Article 16(1)For the purpose of application of the provisions of paragraph (1) of the preceding Article when the debtor is a corporation, the term "unable to pay debts" in that paragraph is deemed to be replaced with "unable to pay debts or insolvent (meaning the condition in which a debtor is unable to pay its debts in full with its property)".

(2)The provisions of the preceding paragraph do not apply to any existing general partnership company or limited partnership company.

Article 17If proceedings equivalent to bankruptcy proceedings are commenced against a debtor in a foreign state, a fact constituting the grounds for the commencement of bankruptcy proceedings is presumed to exist with regard to the debtor.

Article 18(1)A creditor or debtor may file a petition to commence bankruptcy proceedings.

(2)A creditor, when filing a petition to commence bankruptcy proceedings must make a prima facie showing of the existence of the claim held by the creditor and the fact constituting the grounds for the commencement of bankruptcy proceedings.

Article 19(1)A petition to commence bankruptcy proceedings for the corporations set forth in the following items may be filed by the person that the relevant item prescribes:

(2)A liquidator may also file a petition to commence bankruptcy proceedings against a corporation set forth in any of the items of the preceding paragraph.

(3)When filing a petition to commence bankruptcy proceedings pursuant to the provisions of the preceding two paragraphs against a corporation set forth in any of the items of paragraph (1), a prima facie showing of the fact constituting the grounds for the commencement of bankruptcy proceedings must be made, except when the petition to commence bankruptcy proceedings is filed by all of its company directors, members executing business, or liquidators.

(4)The provisions of the preceding three paragraphs apply mutatis mutandis to a corporation other than those listed in the items of paragraph (1).

(5)A petition to commence bankruptcy proceedings for a corporation, even after its dissolution, may be filed up until the delivery or distribution of its residual assets is completed.

Article 20(1)A petition to commence bankruptcy proceedings must be filed by means of a document stating the particulars specified by the Rules of the Supreme Court.

(2)If a person other than a creditor files a petition to commence bankruptcy proceedings, the person must submit to the court a list of creditors stating the particulars specified by the Rules of the Supreme Court; provided, however, that if it is impossible to submit a list of creditors at the same time as filing the petition, it is sufficient for the person to submit the list without delay after filing the petition.

Article 21(1)When a document under paragraph (1) of the preceding Article (hereinafter referred to as a "written petition to commence bankruptcy proceedings") does not state the particulars prescribed in that paragraph, a court clerk must specify a reasonable period and make a disposition to order that such defect should be corrected within that period. The same applies where fees for a petition to commence bankruptcy proceedings required under the provisions of the Act on Costs of Civil Procedure (Act No. 40 of 1971) are not paid.

(2)The disposition set forth in the preceding paragraph becomes effective when a notice is given by a means that is considered to be appropriate.

(3)An objection may be made to a disposition set forth in paragraph (1) within an unextendable period of one week from the day on which a notice thereof is received.

(4)The objection set forth in the preceding paragraph has the effect of a stay of execution.

(5)Where an objection under paragraph (3) is made, the court, when it finds in a written petition to commence bankruptcy proceedings any defect other than the defect for which it ordered correction by a disposition set forth in paragraph (1), must specify a reasonable period and order that such additional defect should be corrected within that period.

(6)In the case referred to in paragraph (1) or the preceding paragraph, if a petitioner for commencement of bankruptcy proceedings fails to correct the defect, the presiding judge must dismiss the written petition to commence bankruptcy proceedings by an order.

(7)An immediate appeal may be filed against the direction set forth in the preceding paragraph.

Article 22(1)When filing a petition to commence bankruptcy proceedings, the petitioner must prepay an amount designated by the court as expenses for bankruptcy proceedings.

(2)An immediate appeal may be filed against an order on prepayment of expenses.

Article 23(1)When the court, while taking into consideration the petitioner's financial resources, the status of property that is to constitute the bankruptcy estate and any other circumstances concerned, finds it particularly necessary for the protection of the interests of the petitioner and any interested person, it may make provisional payment of expenses for bankruptcy proceedings from the national treasury. The same applies when the court makes an order of commencement of bankruptcy proceedings by its own authority.

(2)The provisions of paragraph (1) of the preceding Article do not apply where provisional payment of expenses for bankruptcy proceedings is made from the national treasury pursuant to the provisions of the first sentence of the preceding paragraph.

Article 24(1)Where a petition to commence bankruptcy proceedings is filed, the court, when it finds it necessary, upon the petition of an interested person or by its own authority, may order a stay of the following proceedings or dispositions until an order is made on the petition to commence bankruptcy proceedings; provided, however, that this only applies, in the case of the proceedings set forth in item (i) or the disposition set forth in item (vi), if the stay order is not likely to cause unreasonable damage to the creditor who filed the petition for the proceedings or the person who made the disposition, and in the case of the proceedings for limitation of liability set forth in item (v), if an order to commence proceedings for limitation of liability has not yet been made:

(2)The court may change or revoke a stay order issued under the provisions of the preceding paragraph.

(3)Where a provisional administration order prescribed in Article 91, paragraph (2) is issued, the court may, when it finds it particularly necessary for the administration and disposal of the debtor's property, upon the petition of a provisional administrator, order the revocation of the procedure for compulsory execution, etc. or disposal of foreign tax delinquency which has been stayed pursuant to the provisions of paragraph (1), while requiring security to be provided.

(4)An immediate appeal may be filed against a stay order issued under the provisions of paragraph (1), an order made under the provisions of paragraph (2) and a revocation order issued under the provisions of the preceding paragraph.

(5)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

(6)Where a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal referred to in that paragraph are made, the electronic judgment (meaning an electronic or magnetic record prepared pursuant to the provisions of Article 252, paragraph (1) of the Code of Civil Procedure applied mutatis mutandis pursuant to Article 122 of that Code applied mutatis mutandis pursuant to Article 13 that has been recorded in a file pursuant to the provisions of Article 253, paragraph (2) of that Code applied mutatis mutandis pursuant to Article 122 of that Code applied mutatis mutandis pursuant to Article 13; the same applies hereinafter) must be served upon the parties concerned.

Article 25(1)Where a petition to commence bankruptcy proceedings is filed, if there are special circumstances where the court finds that there is a risk that it would be impossible to achieve the purpose of the bankruptcy proceedings satisfactorily only by issuing a stay order pursuant to the provisions of paragraph (1),item(i) or (vi) of the preceding Article, the court, upon the petition of an interested person or by its own authority, may issue an order prohibiting all creditors from enforcing compulsory execution, etc. against a debtor's property, and a collection of national tax delinquency (including a disposition to be made by a procedure for making a disposal of national tax delinquency, and excluding a request for distribution; the same applies hereinafter), until an order is made on the petition to commence bankruptcy proceedings; provided, however, that this applies only where the court issues a provisional order in advance or simultaneously under the provisions of Article 28, paragraph(1) or provisional administration order prescribed in Article 91, paragraph(2) with respect to the debtor's principal property.

(2)Upon issuing a stay order under the provisions of the preceding paragraph (hereinafter referred to as a "comprehensive stay order"), the court, when it finds it appropriate, may exclude a certain range of compulsory execution, etc. or procedures for collection of national tax delinquency from the that which is subject to a comprehensive stay order.

(3)Where a comprehensive stay order is issued, the procedure for compulsory execution, etc. and disposal of foreign tax delinquency which have already been initiated against the debtor's assets (limited to such procedures or disposals that are to be prohibited by the comprehensive stay order) is stayed until an order is made on the petition to commence bankruptcy proceedings.

(4)The court may change or revoke a comprehensive stay order.

(5)Where a provisional administration order prescribed in Article 91, paragraph (2) is issued, the court, when it finds it particularly necessary for the administration and disposal of the debtor's property, upon the petition of a provisional administrator, may order revocation of the procedure for compulsory execution, etc. or disposal of foreign tax delinquency which has been stayed pursuant to the provisions of paragraph (3), while requiring security to be provided.

(6)An immediate appeal may be filed against a comprehensive stay order, an order made under the provisions of paragraph (4) and a revocation order issued under the provisions of the preceding paragraph.

(7)The immediate appeal set forth in the preceding paragraph does not have the effect of stay of execution.

(8)When a comprehensive stay order is issued, the prescription is not completed with regard to a bankruptcy claim, etc. (limited to a claim for which compulsory execution, etc. or procedure for collection of national tax delinquency is prohibited by the comprehensive stay order) until the day on which two months have elapsed since the day following the day on which the comprehensive stay order ceases to be effective.

Article 26(1)Where a comprehensive stay order is issued and an order to change or revoke this order is made, public notice is made to that effect, the electronic judgment is served upon the debtor (or a provisional administrator if any provisional administrator is appointed; the same applies in the following paragraph) and the petitioner, and notification of the main text of the respective order must be given to known creditors and the debtor (limited to cases where a provisional administrator is appointed).

(2)A comprehensive stay order and an order changing or revoking this order becomes effective as from the time when the electronic judgment is served upon the debtor.

(3)Where a judicial decision on an immediate appeal set forth in paragraph (6) of the preceding Article (excluding an order changing or revoking a comprehensive stay order) is made, the electronic judgment must be served upon the parties concerned.

Article 27(1)The court may, when it finds after issuing a comprehensive stay order, that the order is likely to cause undue damage to a creditor who filed a petition for compulsory execution, etc., upon the petition of the creditor, make an order that the comprehensive stay order is cancelled only with regard to that creditor. In this case, the creditor may enforce compulsory execution, etc. against the debtor's property, and any procedure for compulsory execution, etc. initiated by the creditor prior to the issuance of the comprehensive stay order and then stayed pursuant to the provisions of Article 25, paragraph (3) is continued.

(2)The provisions of the preceding paragraph apply mutatis mutandis where the court finds that a comprehensive stay order is likely to cause undue damage to a person who enforces a procedure for collection of national tax delinquency.

(3)For the purpose of application of the provisions of Article 25, paragraph (8) to a person who obtains a cancellation order under the provisions of paragraph (1) (including cases where applied mutatis mutandis pursuant to the preceding paragraph; the same applies in the following paragraph and paragraph (6)), the phrase "the day on which the comprehensive stay order ceases to be effective" in Article 25, paragraph (8) is deemed to be replaced with "the day on which a cancellation order under the provisions of Article 27, paragraph (1) (including cases where applied mutatis mutandis pursuant to paragraph (2) of the same Article) is made."

(4)An immediate appeal may be filed against a judicial decision on the petition set forth in paragraph (1).

(5)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

(6)Where a judicial decision on the petition set forth in paragraph (1) and a judicial decision on the immediate appeal set forth in paragraph (4) are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 28(1)Where a petition to commence bankruptcy proceedings is filed, the court, upon the petition of an interested person or by its own authority, may issue a provisional order that prohibits the disposal of the debtor's assets or any other necessary provisional order concerning such assets until a decision is made on the petition to commence bankruptcy proceedings.

(2)The court may change or revoke a provisional order issued under the provisions of the preceding paragraph.

(3)An immediate appeal may be filed against a provisional order issued under the provisions of paragraph (1) and an order made under the provisions of the preceding paragraph.

(4)The immediate appeal set forth in the preceding paragraph does not have the effect of a stay of execution.

(5)Where a judicial decision prescribed in paragraph (3) and a judicial decision on the immediate appeal set forth in that paragraph are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(6)Where the court, pursuant to the provisions of paragraph (1), has issued a provisional order to prohibiting the debtor from making payment to a creditor or conducting any other act with the creditor to extinguish the debtor's debt, the creditor may not assert, in relation to the bankruptcy proceedings, the effect of the payment or any other act to extinguish the debt, which is made or conducted in violation of the provisional order; provided, however, that this applies only if the creditor knows, at the time of commission of such act, the fact that the provisional order was issued.

Article 29A person who has filed a petition to commence bankruptcy proceedings may withdraw the petition only prior to an order of commencement of bankruptcy proceedings being made. In this case, after a stay order under the provisions of Article 24, paragraph (1), comprehensive stay order, provisional order under the provisions of paragraph (1) of the preceding Article, provisional administration order prescribed in Article 91, paragraph (2) or provisional order under the provisions of Article 171, paragraph (1) is issued, permission of the court is required.

Article 30(1)If a petition to commence bankruptcy proceedings is filed, the court, when it finds a fact constituting the grounds for the commencement of bankruptcy proceedings, makes an order of commencement of bankruptcy proceedings, except in any of the cases listed in the following items:

(2)The order made under the preceding paragraph is effective as from the time when it is made.

Article 31(1)The court must, upon making an order of commencement of bankruptcy proceedings, appoint one or more bankruptcy trustees and specify the following particulars:

(2)Notwithstanding the provisions of item (i) and item (iii) of the preceding paragraph, the court, when it finds that the bankruptcy estate is likely to be insufficient for paying expenses for bankruptcy proceedings, may choose not to specify the period set forth in item (i) of that paragraph and the period and date set forth in item (iii) of that paragraph.

(3)In the case referred to in the preceding paragraph, the court must, if it finds that the bankruptcy estate is no longer likely to be insufficient for paying expenses for bankruptcy proceedings, promptly specify the period set forth in paragraph (1), item (i) and the period or date set forth in item (iii) of that paragraph.

(4)Notwithstanding the provisions of paragraph (1), item (ii), the court may, if it finds it inappropriate to convoke a meeting for reporting the status of property while taking into consideration the number of known bankruptcy creditors and any other circumstances concerned, choose not to specify the date set forth in paragraph (1), item (ii).

(5)In the case referred to in paragraph (1), if there are 1,000 or more known bankruptcy creditors and it is found appropriate, the court may make an order not to give a notice to bankruptcy creditors under the provisions of paragraph (3),item (i) of the following Article, as applied mutatis mutandis pursuant to the main clauses of paragraph (4) and paragraph (5) of that Article, and the provisions of the main clause of Article 33, paragraph (3) and the main clause of Article 139, paragraph (3) (in the case referred to in the main clause of Article 139, paragraph (3), creditors with voting rights prescribed in the main clause of Article 139, paragraph (3); the same applies in paragraph (2) of the following Article), and not to summon, on the date of a creditors meeting, bankruptcy creditors who filed a proof of claim in bankruptcy pursuant to the provisions of Article 111, Article 112 or Article 114 (hereinafter referred to as "holders of filed bankruptcy claims").

Article 32(1)The court must, when it has made an order of commencement of bankruptcy proceedings, immediately make a public notice of the following particulars:

(2)When an order under paragraph (5) of the preceding Article is made, the court must, in addition to the particulars set forth in the items of the preceding paragraph, make a public notice to the effect that it will not give a notice to bankruptcy creditors under the provisions of item (i) of the following paragraph, as applied mutatis mutandis pursuant to the main clauses of paragraph (4) and paragraph (5), and the provisions of the main clause of paragraph (3) of the following Article and the main clause of Article 139, paragraph (3), and that it will not summon holders of filed bankruptcy claims on the date of a creditors meeting.

(3)The following persons must be given a notice of the particulars of which a public notice should be made pursuant to the provisions of the preceding two paragraphs:

(4)The provisions of paragraph (1), item (iii) and item (i) of the preceding paragraph apply mutatis mutandis where the period set forth in paragraph (1),item (i) of the preceding Article and the period or date set forth in item (iii) of the same paragraph are specified pursuant to the provisions of paragraph (3) of the same Article; provided, however, that when an order under paragraph (5) of the same Article is made, the notice is not required to be given to known bankruptcy creditors.

(5)The provisions of paragraph (1), item (ii) and paragraph (3), item (i) and item (ii) apply mutatis mutandis where there is a change in the particulars set forth in paragraph (1), item(ii), and the provisions of paragraph (1), item (iii) and paragraph (3), item (i) apply mutatis mutandis where there is a change in the particulars set forth in paragraph (1) ,item(iii) (limited to cases where there is a change to the period set forth in paragraph (1), item (i) of the preceding Article or the date set forth in item (ii) of that paragraph); provided, however, that when an order under paragraph (5) of that Article is made, the notice is not required to be given to known bankruptcy creditors.

Article 33(1)An immediate appeal may be filed against a judicial decision on a petition to commence bankruptcy proceedings.

(2)The provisions of Articles 24 through 28 apply mutatis mutandis when an immediate appeal referred to in the preceding paragraph is filed against an order dismissing with prejudice a petition to commence bankruptcy proceedings.

(3)The court that has made an order of commencement of bankruptcy proceedings must immediately make a public notice of the main text of the revocation order and give a notice of the main text thereof to the persons listed in the items of paragraph (3) of the preceding Article (excluding item (iii)), if an immediate appeal set forth in paragraph (1) is filed and an order to revoke this order becomes final and binding; provided, however, that when an order set forth in Article 31, paragraph (5) is made, the notice is not required to be given to known bankruptcy creditors.

Article 91(1)Where a petition to commence bankruptcy proceedings is filed, when a debtor (limited to a corporation; hereinafter the same applies in this Section, Article 148, paragraph (4) and Article 152, paragraph (2)) administers and disposes of its property in an inappropriate manner or the court otherwise finds it particularly necessary for securing the debtor's property, the court may, upon the petition of an interested person or by its own authority, make a disposition to order that the debtor's property be administered by a provisional administrator until an order is made on the petition to commence bankruptcy proceedings.

(2)The court must, when making a disposition under the provisions of the preceding paragraph (hereinafter referred to as a "provisional administration order"), appoint one or more provisional administrators in the provisional administration order.

(3)The provisions of the preceding two paragraphs apply mutatis mutandis where an immediate appeal set forth in Article 33, paragraph (1) is filed against an order dismissing a petition to commence bankruptcy proceedings.

(4)The court may change or revoke a provisional administration order.

(5)An immediate appeal may be filed against a provisional administration order and an order made under the provisions of the preceding paragraph.

(6)The immediate appeal set forth in the preceding paragraph does not have the effect of stay of execution.

Article 92(1)The court must, when it has issued a provisional administration order, make a public notice to that effect. The same applies when the court makes an order to change or revoke a provisional administration order.

(2)When a provisional administration order is issued, an order under the provisions of paragraph (4) of the preceding Article is made, and a judicial decision on the immediate appeal set forth in paragraph (5) of that Article is made, the electronic judgments must be served upon the parties concerned.

(3)The provisions of Article 10, paragraph (4) do not apply to the case referred to in paragraph (1).

Article 93(1)When a provisional administration order is issued, the right to administer and dispose of the debtor's property (irrespective of whether or not it exists in Japan) is vested exclusively in a provisional administrator; provided, however, that a provisional administrator must obtain permission of the court in order to conduct any act that does not fall within the scope of the debtor's ordinary business.

(2)Any act conducted without the permission set forth in the proviso to the preceding paragraph is void; provided, however, that this may not be asserted against a third party in good faith.

(3)The provisions of Article 78, paragraphs (2) through (6) apply mutatis mutandis to a provisional administrator.

Article 94(1)A provisional administrator must, upon the termination of their duties, make a report of account to the court in writing without delay.

(2)In the case referred to in the preceding paragraph, if there is a vacancy in the office of a provisional administrator, the report of account set forth in the same paragraph must, notwithstanding the provisions of that paragraph, be submitted by a successor provisional administrator or a bankruptcy trustee.

Article 95(1)A provisional administrator, if necessary, may appoint one or more provisional administrator representatives on their own responsibility, in order to have them perform their duties.

(2)The appointment of a provisional administrator representative under the provisions of the preceding paragraph requires the permission of the court.

Article 96(1)The provisions of Article 40 apply mutatis mutandis to a request made by a provisional administrator, the provisions of Article 47, Article 50, and Article 51 apply mutatis mutandis when a provisional administration order is issued, the provisions of Article 74, paragraph (2), Article 75, Article 76, Article 79, Article 80, Articles 82 through 85, Article 87, paragraphs (1) through (2) and Article 90, paragraph (1) apply mutatis mutandis to a provisional administrator, and the provisions of Article 87, paragraphs (1) and (2) apply mutatis mutandis to a provisional administrator representative. In such cases, the phrase "public notice under the provisions of Article 32, paragraph (1)" in Article 51 is deemed to be replaced with "public notice under the provisions of Article 92, paragraph (1)," and the term "successor bankruptcy trustee" in Article 90, paragraph (1) is deemed to be replaced with "successor provisional administrator or a bankruptcy trustee."

(2)With regard to an action relating to a debtor's property and a case relating to a debtor's property that is pending before an administrative agency, the provisions specified in the following items apply mutatis mutandis in the cases set forth in the respective items:

Article 97The following claims (excluding those falling within the scope of claims on the estate) are to be included in the scope of bankruptcy claims:

Article 98(1)A bankruptcy claim for which a general statutory lien or any other general priority exists over property that belongs to the bankruptcy estate (excluding a subordinate bankruptcy claim prescribed in paragraph (1) of the following Article and consensually-subordinated bankruptcy claim prescribed in paragraph (2) of that Article; hereinafter referred to as a "preferred bankruptcy claim") takes precedence over other bankruptcy claims.

(2)In the case referred to in the preceding paragraph, the order of priority among preferred bankruptcy claims is as provided for by the Civil Code, the Commercial Code, or any other laws.

(3)When a priority exists with regard to the amount of claim arising for a specific period of time, the period is calculated from the time of commencement of bankruptcy proceedings.

Article 99(1)The following claims (hereinafter referred to as "subordinate bankruptcy claims") are subordinated to other bankruptcy claims (excluding the consensually-subordinated bankruptcy claim prescribed in the following paragraph):

(2)A claim for which the bankruptcy creditor and the bankrupt, prior to the commencement of bankruptcy proceedings, have reached an agreement prior to the commencement of bankruptcy proceedings, to the effect that if bankruptcy proceedings are commenced against the bankrupt, the claim is subordinated to a subordinate bankruptcy claim in the order of priority for receiving a distribution in the bankruptcy proceedings (hereinafter referred to as an "consensually-subordinated bankruptcy claim") is subordinated to a subordinate bankruptcy claim.

Article 100(1)A bankruptcy claim, except as otherwise provided for in this Act, may not be enforced without going through bankruptcy proceedings.

(2)The provisions of the preceding paragraph do not apply when enforcing a claim for tax, etc. (excluding a foreign tax claim subject to mutual assistance), which is a bankruptcy claim, through the following acts:

Article 101(1)If a bankruptcy creditor who filed a notification of claim for salary or a claim for a retirement allowance, both of which are preferred bankruptcy claims, is likely to have difficulty in maintaining their standard of living unless they receive payment of these bankruptcy claims, the court may permit payment of the claim in whole or in part, before permission is granted for the first time for the final distribution prescribed in Article 195, paragraph (1), simplified distribution prescribed in Article 204, paragraph (1), consensual distribution prescribed in Article 208, paragraph (1) or interim distribution prescribed in Article 209, paragraph (1), upon the petition of a bankruptcy trustee or by its own authority,; provided, however, that this applies only if the payment is not likely to harm the interest of a person who holds a claim on the estate or any other preferred bankruptcy claim with the same or higher level of priority.

(2)When a bankruptcy trustee is requested by a bankruptcy creditor set forth in the preceding paragraph to file the petition set forth in that paragraph, the bankruptcy trustee must report that fact to the court immediately. In such a case, if the bankruptcy trustee has decided not to file a petition, the trustee must report the reason for this to the court without delay.

Article 102If a set-off of a claim that belongs to the bankruptcy estate against a bankruptcy claim conforms to the common interests of bankruptcy creditors, a bankruptcy trustee may effect a set-off with permission of the court.

Article 103(1)A bankruptcy creditor may participate in bankruptcy proceedings with regard to a bankruptcy claim that the creditor holds.

(2)In the case referred to in the preceding paragraph, the amount of a bankruptcy claim is the amount specified in each of the following items in accordance with the category of claims set forth in the respective items:

(3)If a bankruptcy claim is a claim with a due date that is to become due after the commencement of bankruptcy proceedings, such bankruptcy claim is deemed to have become due at the time of commencement of bankruptcy proceedings.

(4)Even if a bankruptcy claim, at the time of commencement of bankruptcy proceedings, is a claim with conditions or is a claim which may arise in the future, the bankruptcy creditor may participate in the bankruptcy proceedings by reason of the bankruptcy claim.

(5)Notwithstanding the provisions of paragraph (1), in order to participate in bankruptcy proceedings by reason of a claim for a foreign tax subject to mutual assistance, a decision of implementation of mutual assistance (meaning the decision of implementation of mutual assistance prescribed in Article 11, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties; the same applies in Article 134, paragraph (2)) is required.

Article 104(1)When two or more persons each have the obligation of entire performance, if an order of commencement of bankruptcy proceedings is made against all or some or one of them, their creditor may participate in the bankruptcy proceedings against each of the persons with regard to the whole amount of the claim that they hold at the time of commencement of bankruptcy proceedings.

(2)In the case referred to in the preceding paragraph, even if other persons who have the obligation of entire performance has made payment to the creditor or conducted any other act with the creditor to cause their debt to be extinguished (hereinafter referred to as "payment, etc." in this Article) after the commencement of bankruptcy proceedings, the creditor, except where the whole amount of the claim is extinguished, may exercise their right for the whole amount of the claim that they hold at the time of the commencement of bankruptcy proceedings.

(3)In the case prescribed in paragraph (1), a person who has a right to obtain reimbursement to be exercised against the bankrupt in the future may participate in the bankruptcy proceedings with regard to the whole amount of reimbursement; provided, however, that this does not apply when a creditor has participated in the bankruptcy proceedings with regard to the claim that they hold at the time of commencement of bankruptcy proceedings.

(4)When a creditor participates in the bankruptcy proceedings pursuant to the provisions of paragraph (1), if a person who has a right to obtain reimbursement to be exercised against the bankrupt in the future has made payment, etc. to the creditor after the commencement of bankruptcy proceedings, the person who has a right to obtain reimbursement may exercise the creditor's right as a bankruptcy creditor to the extent of the right to obtain reimbursement only when the whole amount of the creditor's claim is extinguished.

(5)The provisions of paragraph (2) apply mutatis mutandis when a third party who provided their property as security in order to secure the bankrupt's debt (hereinafter referred to as a "third party collateral provider " in this paragraph) has made payment, etc. to the creditor after the commencement of bankruptcy proceedings, and the provisions of the preceding two paragraphs apply mutatis mutandis to a third party collateral provider who has the right to obtain against the bankrupt in the future.

Article 105If an order of commencement of bankruptcy proceedings is made against a guarantor, the creditor may participate in the bankruptcy proceedings with regard to the whole amount of the claim that they hold at the time of commencement of bankruptcy proceedings.

Article 106When an order of commencement of bankruptcy proceedings is made against a person who has unlimited liability for a corporation's debts, a creditor of the corporation may participate in the bankruptcy proceedings with regard to the whole amount of the claim that they hold at the time of commencement of bankruptcy proceedings.

Article 107(1)If an order of commencement of bankruptcy proceedings is made against a person who has limited liability for a corporation's debts, a creditor of the corporation may not participate in the bankruptcy proceedings. In such a case, the corporation is not precluded from participating in the bankruptcy proceedings to demand contributions.

(2)When there is a person who has limited liability for a corporation's debts, if an order of commencement of bankruptcy proceedings is made against the corporation, a creditor of the corporation may not exercise their right against the person who has limited liability for the corporation's debts.

Article 108(1)A holder of a right of separate satisfaction may, with regard to a claim secured by a security right prescribed in Article 65, paragraph (2) which pertains to the right of separate satisfaction, exercise their right as a bankruptcy creditor only for the amount of the claim for which payment cannot be received by exercising the right of separate satisfaction; provided, however, that where the amount of the claim secured by the security right is no longer secured in whole or part after the commencement of bankruptcy proceedings, the holder of the right of separate satisfaction is not precluded from exercising their right as a bankruptcy creditor for the whole or part of the amount of the claim.

(2)The preceding paragraph also applies to a person who holds a special statutory lien, pledge or mortgage on the bankrupt's property that does not belong to the bankruptcy estate or a person who, when an additional order of commencement of bankruptcy proceedings is made against the bankrupt, holds a bankruptcy claim in the previous bankruptcy proceedings.

Article 109Even if a bankruptcy creditor by exercising their right against property that belongs to the bankruptcy estate and exists in a foreign state, has received payment of their bankruptcy claim after an order of commencement of bankruptcy proceedings is made, may participate in the bankruptcy proceedings with regard to the amount of the claim at the time before receiving the payment.

Article 110(1)Bankruptcy creditors, with permission of the court, may jointly or severally appoint one or more bankruptcy creditor representatives.

(2)A bankruptcy creditor representative may perform any and all acts involved in bankruptcy proceedings in the interest of the bankruptcy creditors who appoint the representative.

(3)If there are two or more bankruptcy creditor representatives, they exercise their authority jointly; provided, however, that it is sufficient for a manifestation of intention by a third party to be made to one of them.

(4)The court may rescind the permission set forth in paragraph (1) when it finds the exercise of authority by the bankruptcy creditor representative to be particularly unfair.

Article 111(1)A bankruptcy creditor who seeks to participate in bankruptcy proceedings must file notification of the following particulars to the court within a period during which proofs of bankruptcy claims should be filed as specified pursuant to the provisions of Article 31, paragraph (1), item (i), or paragraph (3) (hereinafter referred to as a "period for filing proofs of claims"):

(2)A holder of a right of separate satisfaction must, in addition to the particulars set forth in the items of the preceding paragraph, file a notification of the following particulars:

(3)The provisions of the preceding paragraph apply mutatis mutandis to a holder of a special statutory lien, pledge or mortgage or holder of a bankruptcy claim prescribed in Article 108, paragraph (2) (hereinafter referred to as a "holder of a quasi-right of separate satisfaction").

Article 112(1)When a bankruptcy creditor is unable to file proofs of bankruptcy claims by the expiration of the period set forth in Article 31, paragraph (1), item(iii) (hereinafter referred to as the "ordinary period for investigation") or the end of the date set forth in Article 31, paragraph (1), item (iii) (hereinafter referred to as the "ordinary date of investigation") due to grounds not attributable to them, they may file a notification only within one month after the grounds cease to exist.

(2)The one-month period prescribed in the preceding paragraph may not be extended or shortened.

(3)With regard to a bankruptcy claim arising after the expiration of the ordinary period for investigation or the end of the ordinary date of investigation, a notification must be filed within an unextendable period of one month after the claim arose.

(4)The provisions of paragraphs (1) and (2) apply mutatis mutandis when a bankruptcy creditor, after the expiration of the ordinary period for investigation or the end of ordinary date of investigation, makes a change to any filed particular, which is prejudicial to the interest of other bankruptcy creditors, due to grounds not attributable to them.

Article 113(1)A person who has acquired a filed bankruptcy claim may have the title of the holder of the filed claim changed even after the expiration of the ordinary period for investigation or the end of the ordinary date of investigation.

(2)The person to whom the title of the holder of a filed claim is to be changed pursuant to the provisions of the preceding paragraph, if the person has the intention of receiving distribution money even if the total amount of distribution to be given to them is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1),item (iv), must file a notification with the court to that effect.

Article 114A person who holds any of the following claims must file with the court a notification of the amount and cause of the claim, and if the claim in question is a claim for a foreign tax subject to mutual assistance, a statement to that effect, and any other particulars specified by the Rules of the Supreme Court, without delay. In such a case, if the person who holds the claim is a holder of a right of separate satisfaction or holder of a quasi-right of separate satisfaction, the provisions of Article 111, paragraph (2) apply mutatis mutandis:

Article 153(1)A bankruptcy trustee must, without delay after the commencement of bankruptcy proceedings, evaluate the value of any and all of the property that belongs to the bankruptcy estate at the time of commencement of bankruptcy proceedings. In such a case, the bankruptcy trustee may have the bankrupt attend the evaluation.

(2)A bankruptcy trustee must, when they have completed the evaluation under the provisions of the preceding paragraph, immediately prepare an inventory of assets and a balance sheet at the time of commencement of bankruptcy proceedings and submit them to the court.

(3)If the total amount of property that belongs to a bankruptcy estate is less than the amount specified by the Rules of the Supreme Court, a bankruptcy trustee may, with the permission of the court, choose not to prepare and submit the balance sheet referred to in that paragraph, notwithstanding the provisions of the preceding paragraph.

Article 154(1)A bankruptcy trustee may request a holder of a right of separate satisfaction to present the collateral for the right of separate satisfaction.

(2)When a bankruptcy trustee seeks to evaluate the collateral referred to in the preceding paragraph, the holder of a right of separate satisfaction may not refuse it.

Article 155(1)A bankruptcy trustee may, when they find it necessary, have a court clerk, court execution officer, or notary put a seal on property that belongs to a bankruptcy estate or remove the seal.

(2)A court clerk may, when they find it necessary, close books relating to the bankruptcy estate upon the petition of a bankruptcy trustee.

Article 156(1)The court may issue a ruling ordering that the bankrupt deliver property that belongs to the bankruptcy estate to the bankruptcy trustee upon the petition of a bankruptcy trustee.

(2)The court must, when issuing a ruling referred to in the preceding paragraph, interrogate the bankrupt.

(3)An immediate appeal may be filed against an order on the petition referred to in paragraph (1).

(4)When a judicial decision on the ruling on the petition referred to in paragraph (1) and on the immediate appeal referred to in the preceding paragraph are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(5)The ruling referred to in paragraph (1) does not become effective unless it becomes final and binding.

Article 157(1)A bankruptcy trustee must, without delay after the commencement of bankruptcy proceedings, submit a written report stating the following particulars to the court:

(2)Beyond what is prescribed in the preceding paragraph, a bankruptcy trustee must, as determined by the court, report to the court the status of the administration and disposal of property that belong to the bankruptcy estate and any other particulars ordered by the court.

Article 158At a meeting for reporting the status of property, a bankruptcy trustee must report the outline of the particulars set forth in the items of paragraph (1) of the preceding Article.

Article 159A bankruptcy trustee must, as determined by a resolution at a creditor meeting, report the status of the bankruptcy estate to the creditors meeting.

Article 160(1)The following acts (excluding acts concerning the provisions of security or extinguishment of debt) may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings:

(2)With respect to an act concerning the extinguishment of debt conducted by the bankrupt, if the value of the performance received by the creditor exceeds the amount of the debt extinguished by the act, and the act satisfies any of the requirements set forth in the items of the preceding paragraph, the act may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings only with regard to the part other than the part equivalent to the amount of the debt extinguished.

(3)A gratuitous act or an onerous act that should be deemed to be equivalent to a gratuitous act, conducted by the bankrupt after or within six months prior to suspension of payments, etc. may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings.

Article 161(1)When the bankrupt has, after conducting an act of disposing of property, received reasonable consideration from the other party to the act, the act may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings, if it satisfies all of the following requirements:

(2)For the purpose of application of the provisions of the preceding paragraph, if the other party to the act is any of the following persons, the other party is presumed to have known, at the time of the act, that the bankrupt had the intention of concealing or carrying out other disposal referred to in item (ii) of that paragraph:

Article 162(1)The following acts (limited to acts concerning the provision of security or extinguishment of debt conducted with regard to an existing debt) may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings:

(2)For the purpose of application of the provisions of item (i) of the preceding paragraph, in the following cases, the creditor is presumed to have known, at the time of the act set forth in that item, either of the facts specified in the following sub-item (a) or (b) in accordance with the category of the case set forth in sub-item (a) or (b), respectively (in the case set forth in sub-item (a) of that item, both the fact that the bankrupt was unable to pay debts and the fact that the bankrupt suspended payments):

(3)For the purpose of application of the provisions of the items of paragraph (1), after suspension of payments took place (limited to suspension that took place within one year prior to the filing of a petition to commence bankruptcy proceedings), the bankrupt is presumed to have been unable to pay debts.

Article 163(1)The provisions of paragraph (1), item (i) of the preceding Article do not apply when a person who has received payment of a negotiable instrument from the bankrupt would lose their right on the negotiable instrument against one or more debtors on the negotiable instrument unless the person receives the payment.

(2)In the case referred to in the preceding paragraph, if the final obligor for reimbursement or the person who had entrusted the drawing of the negotiable instrument had known or was negligent in not knowing, at the time of drawing, the fact that suspension of payments, etc. had taken place, a bankruptcy trustee may have these persons redeem the money paid by the bankrupt to them.

(3)The provisions of paragraph (1) of the preceding Article do not apply to an act concerning the provision of security or extinguishment of debt, which is conducted by the bankrupt with regard to a claim for tax, etc. (excluding a claim for a foreign tax subject to mutual assistance) or claim for a fine, etc., for the person who has the authority to collect the claim.

Article 164(1)When an act necessary to assert the establishment, transfer, or modification of a right against a third party (including a provisional registration) was conducted after suspension of payments, etc. took place, if the act was conducted after 15 days had elapsed from the date of establishment, transfer or modification of the right, knowing that suspension of payments, etc. had taken place, the act may be avoided in the interest of the bankruptcy estate after the commencement of bankruptcy proceedings; provided, however, that this does not apply to a definitive registration based on prior unavoidable provisional registration.

(2)The provisions of the preceding paragraph apply mutatis mutandis to a registration based on which the acquisition of a right becomes effective.

Article 165The exercise of a right of avoidance is not to be precluded even when an act to be avoided is accompanied by an enforceable title of obligation or is based on an act of execution.

Article 166An act conducted not less than one year before the date of filing of a petition to commence bankruptcy proceedings (excluding the act prescribed in Article 160, paragraph (3)) may not be avoided by reason that the act was conducted after suspension of payments had taken place or while knowing the fact of suspension of payments.

Article 167(1)The exercise of a right of avoidance restores the bankruptcy estate to its original state.

(2)When an act prescribed in Article 160, paragraph (3) is avoided, if the other party did not know, at the time of the act, that suspension of payments, etc. had taken place nor that the act would prejudice a bankruptcy creditor, it is sufficient for the other party to reimburse to the extent actually enriched.

Article 168(1)When an act prescribed in Article 160, paragraph (1) or (3), or Article 161, paragraph (1) is avoided, the other party may exercise a right specified in each of the following items in accordance with the category set forth in the respective items:

(2)Notwithstanding the provisions of item (ii) of the preceding paragraph, in the cases set forth in that item, if the bankrupt, at the time when the act in question was conducted, had the intention to conceal or carry out other disposal of the property that they received as a value for the act and the other party knew that the bankrupt had such intention, the other party may exercise a right specified in each of the following items in accordance with category set forth in the respective items:

(3)For the purpose of application of the provisions of the preceding paragraph, if the other party to the act in question is any of the persons set forth in the items of Article 161, paragraph (2), the other party is presumed to have known, at the time of the act, that the bankrupt had the intention to conceal or carry out other disposal referred to in the preceding paragraph.

(4)A bankruptcy trustee may, when seeking to avoid an act prescribed in Article 160, paragraph (1) or (3), or Article 161, paragraph (1), in lieu of requesting return of the property that should be returned to the bankruptcy estate pursuant to the provisions of paragraph (1) of the preceding Article, request the other party to reimburse the amount obtained by deducting the amount that is included in the scope of claims on the estate pursuant to the provisions of the preceding three paragraphs (in the case set forth in paragraph (1), item (i), the value of the counter-performance received by the bankrupt) from the value of the property to be returned.

Article 169When an act prescribed in Article 162, paragraph (1) is avoided, if the other party returns the performance received or reimburses the value of the performance, this restores the other party's claim to its original state.

Article 170(1)In the cases set forth in the following items, a right of avoidance may also be exercised against subsequent acquirers specified in the respective item if there are grounds for avoidance against the other party to the act to be avoided; provided, however, that if the relevant subsequent acquirer acquired the subject matter from another subsequent acquirer, this is limited to cases where there were grounds for avoidance against all subsequent acquirers who acquired the subject matter before the relevant subsequent acquirer acquired the subject matter:

(2)The provisions of Article 167, paragraph (2) apply mutatis mutandis when a right of avoidance is exercised pursuant to the provisions of item (iii) of the preceding paragraph.

Article 170-2(1)If an act conducted by a bankrupt referred to in the provisions of Article 160, paragraph (1) or paragraph (3) or Article 161, paragraph (1) was avoided by the exercise of a right of avoidance against a subsequent acquirer, the subsequent acquirer may exercise the rights prescribed in the items of Article 168, paragraph (1) in accordance with the category set forth in the respective item; provided, however, that in the case set forth in item (i) of that paragraph, if the value of the counter-performance received by the bankrupt exceeds the value of the counter-performance by the subsequent acquirer or the value of the extinguished claims of the subsequent acquirer referred to in paragraph (4), the subsequent acquirer may exercise the right to make a claim for reimbursement of the value of the counter-performance received by the bankrupt as a holder of a claim on the estate.

(2)Notwithstanding the provisions of the preceding paragraph, in the case set forth in Article 168, paragraph (1), item (ii), if the bankrupt, at the time when the act in question was conducted, had the intention to conceal or carry out other disposal of the property received as value for the act and the other party knew that the bankrupt had the intention, the subsequent acquirer may exercise the rights specified in each item of paragraph (2) of that Article in accordance with category set forth in the respective item.

(3)For the purpose of application of the provisions of the preceding paragraph, if the other party to the act in question is any of the persons set forth in the items of Article 161, paragraph (2), the other party is presumed to have known, at the time of the act, that the bankrupt had the intention to conceal or carry out other disposal referred to in the preceding paragraph.

(4)The exercise of rights under the provisions of paragraph (1) and (2) is limited to the value of the counter-performance by the subsequent acquirer in order to acquire the property from the predecessor or the value of the claim that was extinguished as a result of the acquisition of the property by the subsequent acquirer from the predecessor.

(5)A bankruptcy trustee may, when seeking to avoid an act prescribed in paragraph (1) by exercising a right of avoidance against the subsequent acquirer, in lieu of requesting return of the property that should be returned to the bankruptcy estate pursuant to the provisions of Article 167, paragraph (1), request the subsequent acquirer to reimburse the amount obtained by deducting the amount that is included in the scope of claims on the estate pursuant to the provisions of the preceding four paragraphs (in the case set forth in Article 168, paragraph (1), item (i) (excluding cases filing under the proviso of paragraph (1)), the value of the counter-performance received by the bankrupt) from the value of the property to be returned.

Article 170-3If an act conducted by a bankrupt prescribed in Article 162, paragraph (1) is avoided through the exercise of a right of avoidance against a subsequent acquirer and the subsequent acquirer returns the performance received or reimburses the value of the performance, the subsequent acquirer may exercise the claim of the other party to be restored to its original state pursuant to the provisions of Article 169 if that act were avoided through the exercise of a right of avoidance against the other party. In this case, the provisions of paragraph (4) of the preceding Article apply mutatis mutandis.

Article 171(1)When the court finds it necessary in order to secure a right of avoidance during the period after a petition to commence bankruptcy proceedings is filed until ruling on the petition is made, upon the petition of an interested person (or a provisional administrator if any provisional administrator is appointed) or by its own authority, the court may issue an order of provisional seizure, a provisional disposition, or any other necessary provisional order.

(2)The provisional order under the provisions of the preceding paragraph may be issued with or without requiring the provision of security.

(3)The court may, upon petition or by its own authority, change or revoke a provisional order under the provisions of paragraph (1).

(4)An immediate appeal may be filed against a provisional order under the provisions of paragraph (1) and a judicial decision on the petition referred to in the preceding paragraph.

(5)The immediate appeal referred to in the preceding paragraph does not have the effect of stay of execution.

(6)When a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal referred to in that paragraph are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(7)The provisions of the preceding paragraphs apply mutatis mutandis when an immediate appeal referred to in Article 33, paragraph (1) is filed against an order dismissing a petition to commence bankruptcy proceedings.

Article 172(1)When a provisional order under the provisions of paragraph (1) of the preceding Article (including as applied mutatis mutandis pursuant to paragraph (7) of that Article) is issued, if an order of commencement of bankruptcy proceedings is made, a bankruptcy trustee may continue the procedures for the provisional order.

(2)If a bankruptcy trustee does not continue the procedures for the provisional order referred to in the preceding paragraph pursuant to the provisions of that paragraph within one month after an order of commencement of bankruptcy proceedings is made, the provisional order ceases to be effective.

(3)When a bankruptcy trustee seeks to continue the procedures for the provisional order referred to in paragraph (1) pursuant to the provisions of that paragraph, if the whole or part of the security prescribed in paragraph (2) of the preceding Article (including as applied mutatis mutandis pursuant to paragraph (7) of that Article) does not belong to the bankruptcy estate, the bankruptcy trustee must substitute the whole or part of the security with another security by way of property that belongs to the bankruptcy estate.

(4)The provisions of Article 18, and Chapter II, Section 4 (excluding Article 37, paragraphs (5) through (7)) and Section 5 of the Civil Preservation Act (Act No. 91 of 1989) apply mutatis mutandis to a provisional order issued for the proceedings to be continued by a bankruptcy trustee pursuant to the provisions of paragraph (1).

Article 173(1)A right of avoidance is exercised by a bankruptcy trustee by filing an action, making a request for avoidance, or filing a defense.

(2)The action and case of request for avoidance referred to in the preceding paragraph are subject to the jurisdiction of the bankruptcy court.

Article 174(1)When making a request for avoidance, the requester must make a prima facie showing of the fact constituting the grounds for avoidance.

(2)A judicial decision to uphold a request for avoidance or dismiss the request must be made by an order with reasons attached thereto.

(3)The court must, when making an order referred to in the preceding paragraph, interrogate the other party or any subsequent acquirers.

(4)When an order to uphold a request for avoidance is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(5)The proceedings for a request for avoidance are closed upon the closing of bankruptcy proceedings.

Article 175(1)A person who is dissatisfied with an order to uphold a request for avoidance may file an action to oppose the order within an unextendable period of one month after the day on which the order is served.

(2)The action referred to in the preceding paragraph is subject to the jurisdiction of the bankruptcy court.

(3)A judgment rendered with regard to the action referred to in paragraph (1) approves, changes or revokes the order referred to in that paragraph, except when the action is dismissed as unlawful.

(4)When a judgment to approve an order set forth in paragraph (1) becomes final and binding, the order has the same effect as a final and binding judgment. The same applies if the action referred to in the preceding paragraph is not filed within the period prescribed in that paragraph or is dismissed without prejudice.

(5)With regard to a judgment to approve or change the order referred to in paragraph (1), the court in charge of the case may, as provided for by Article 259, paragraph (1) of the Code of Civil Procedure, declare provisional execution.

(6)The court proceedings of an action referred to in paragraph (1) are concluded upon the closing of bankruptcy proceedings, notwithstanding the provisions of Article 44, paragraph (4).

Article 176A right of avoidance may not be exercised if two years have elapsed since the date of commencement of bankruptcy proceedings. The same applies when 10 years have elapsed since the date of the act to be avoided.

Article 177(1)When an order of commencement of bankruptcy proceedings is made against a debtor who is a corporation, the court may, when it finds it necessary, upon the petition of a bankruptcy trustee or by its own authority, with regard to a claim for damages based on the liabilities of the corporation's director, company director, executive officer, inspector, company auditor, liquidator, or any other person equivalent to them (hereinafter referred to as "officer" in this Section), issue a provisional order on the property of these officers.

(2)When the court finds that there is an urgent need even during the period after a petition to commence bankruptcy proceedings is filed until an order on the petition is made, the court may, upon the petition of a debtor (or a provisional administrator if any provisional administrator is appointed) or by its own authority, issue a provisional order under the provisions of the preceding paragraph.

(3)The court may change or revoke a provisional order under the provisions of the preceding two paragraphs.

(4)An immediate appeal may be filed against a provisional order under the provisions of paragraph (1) or (2) or an order under the provisions of the preceding paragraph.

(5)The immediate appeal referred to in the preceding paragraph does not have the effect of a stay of execution.

(6)When a judicial decision prescribed in paragraph (4) and a judicial decision on the immediate appeal referred to in that paragraph are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(7)The provisions of paragraph (2) through the preceding paragraph apply mutatis mutandis if an immediate appeal referred to in Article 33, paragraph (1) is filed against an order dismissing a petition to commence bankruptcy proceedings.

Article 178(1)When an order of commencement of bankruptcy proceedings is made against a debtor who is a corporation, the court may, when it finds it necessary, upon the petition of a bankruptcy trustee or by its own authority, reach an assessment decision on the rights to seek damages pursuant to the liability of the officers (hereinafter referred to as an "officer's liability assessment order" in this Section), by an order.

(2)When filing the petition referred to in the preceding paragraph, the petitioner must make a prima facie showing of the fact constituting the grounds for liability.

(3)When the court commences proceedings for an officer's liability assessment order by its own authority, it must make an order to that effect.

(4)When a petition referred to in paragraph (1) is filed or an order referred to in the preceding paragraph is made, for the purpose of postponement of expiry of prescription and renewal of prescription, it is deemed that demand by litigation has been made.

(5)The proceedings for an officer's liability assessment order is closed upon the closing of bankruptcy proceedings (excluding cases in which an officer's liability assessment order is already made at the time of the closing of bankruptcy proceedings).

Article 179(1)An officer's liability assessment order and an order dismissing the petition referred to in paragraph (1) of the preceding Article must state reasons therefor.

(2)The court must, when making a judicial decision prescribed in the preceding paragraph, interrogate the officer in question.

(3)When an officer's liability assessment order is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 180(1)A person who is dissatisfied with an officer's liability assessment order may file an action to oppose the order within an unextendable period of one month after the day on which the person received service of the order.

(2)The action referred to in the preceding paragraph is subject to the jurisdiction of the bankruptcy court.

(3)In an action set forth in paragraph (1), a bankruptcy trustee must stand as a defendant if it is filed by an officer, and an officer must stand as a defendant if it is filed by a bankruptcy trustee.

(4)A judgment rendered with regard to the action referred to in paragraph (1) approves, changes or revokes the officer's liability assessment order, except when the action is dismissed as unlawful.

(5)A judgment that approves or changes an officer's liability assessment order has the same effect as a judgment to order performance for the purpose of compulsory execution.

(6)With regard to a judgment that approves or changes an officer's liability assessment order, the court in charge of the case may, as provided for by Article 259, paragraph (1) of the Code of Civil Procedure, declare provisional execution.

Article 181If an action referred to in paragraph (1) of the preceding Article is not filed within the period referred to in that paragraph or is dismissed, the officer's liability assessment order has the same effect as a final and binding judgment to order performance.

Article 182The provisions of Article 663 of the Companies Act apply mutatis mutandis when an order of commencement of bankruptcy proceedings is made against a debtor that is a corporation. In such a case, the term "such membership company in liquidation" in that Article is deemed to be replaced with "a bankruptcy trustee."

Article 183When a silent partnership agreement terminates by reason that the proprietor has received an order of commencement of bankruptcy proceedings, a bankruptcy trustee may have the silent partners pay contributions up to the amount of loss to be borne by them.

Article 184(1)Realization of the property referred to in Article 78, paragraph (2), items (i) and (ii), except when it is conducted through sale by private contract pursuant to those provisions, is to be conducted pursuant to the provisions of the Civil Execution Act and other laws and regulations concerning a procedure for compulsory execution.

(2)A bankruptcy trustee may, pursuant to the provisions of the Civil Execution Act and other laws and regulations concerning a procedure for compulsory execution, realize the collateral for the right of separate satisfaction. In such a case, the holder of the right of separate satisfaction may not refuse the realization.

(3)In the cases referred to in the preceding two paragraphs, the provisions of Article 63 and Article 129 of the Civil Execution Act (including as applied mutatis mutandis pursuant to the provisions of that Act and other laws and regulations concerning a procedure for compulsory execution) do not apply.

(4)In the case referred to in paragraph (2), if the amount to be received by a holder of a right of separate satisfaction has not been finalized, a bankruptcy trustee must separately deposit the fee. In such a case, the right of separate satisfaction exists upon the fee deposited.

Article 185(1)If a holder of a right of separate satisfaction has a right to dispose of the collateral for the right of separate satisfaction by a means other than that prescribed by law, the court may, upon the petition of a bankruptcy trustee, specify a period during which the holder of the right of separate satisfaction should dispose the collateral.

(2)A holder of a right of separate satisfaction that fails to dispose the collateral within the period set forth in the preceding paragraph loses the right referred to in that paragraph.

(3)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1).

(4)When a judicial decision on the petition referred to in paragraph (1) and a judicial decision on the immediate appeal referred to in the preceding paragraph are made, the electronic judgments must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 186(1)If any security rights (meaning a special statutory lien, pledge, mortgage, or a right of retention under the provisions of the Commercial Code or the Companies Act; hereinafter the same applies in this Section) exists at the time of commencement of bankruptcy proceedings against property that belongs to the bankruptcy estate, if it is in the common interest of bankruptcy creditors to extinguish the security interests by selling the property by private contract, a bankruptcy trustee may file a petition to the court for permission to sell the property by private contract and extinguish all security interests on the property by paying to the court the amount of money specified in each of the following items in accordance with the category set forth in the respective items; provided, however, that this does not apply if it is found that this would unduly harm the interest of the persons who hold the security interests:

(2)In the case set forth in item (i) of the preceding paragraph, a bankruptcy trustee who seeks to file a petition referred to in that paragraph must consult with the person who holds the security interest in question in advance with regard to the amount of money deducted from the proceeds and added to the bankruptcy estate.

(3)The petition referred to in paragraph (1) must be filed by means of a document stating the following particulars (hereinafter referred to as a "written petition" in this Section):

(4)When a petition referred to in paragraph (1) is filed, a document or electronic or magnetic record stating or recording the content of the sales contract for the sale of property referred to in item (i) of the preceding paragraph (including the amount of money consisting of the amount of actual costs already paid or to be paid in the future from the bankruptcy estate for concluding and performing the sales contract and the amount of consumption tax, etc. to be imposed on the transfer of the property, which is to be borne by the counterparty under the sales contract) must be submitted to the court.

(5)If a petition referred to in paragraph (1) is filed, the written petition and the document or the electronic or magnetic record referred to in the preceding paragraph must be served upon the person who holds the security right referred to in paragraph (3), item (iv) which is stated in the written petition (hereinafter referred to as "designated security interest holder" in this Section). In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 187(1)If a designated security interest holder has an objection to the petition referred to in paragraph (1) of the preceding Article, they may submit to the court a document or the electronic or magnetic record that certifies their filing of a petition for exercise of security interest within one month after the day on which the written petition and the document or the electronic or magnetic record referred to in paragraph (4) of that Article are served upon all designated security interest holders pursuant to the provisions of paragraph (5) of that Article,.

(2)The court may extend the period referred to in the preceding paragraph upon the petition of a security interest holder, only if the designated security interest holder has compelling reasons.

(3)If there is an agreement between a bankruptcy trustee and a designated security interest holder with regard to the amounts of proceeds and of money to be deducted from the proceeds and added to the estate (in the case set forth in paragraph (1), item (ii) of the preceding Article, the amount of proceeds), the designated security interest holder may not file a petition for exercise of security interests.

(4)A designated security interest holder may not file a petition for exercise of security interests after the period referred to in paragraph (1) (if it is extended pursuant to the provisions of paragraph (2), the extended period; hereinafter the same applies in this Section) has expired, except when an order of permission referred to in Article 189, paragraph (1) is revoked pursuant to the provisions of Article 190, paragraph (6) or an order of non-permission referred to in that paragraph becomes final and binding.

(5)If, after a document or the electronic or magnetic record that certifies the filing of a petition for exercising security interests referred to in paragraph (1) was submitted, the petition for exercise of security interest has been withdrawn or dismissed without prejudice, the document or the electronic or magnetic record is deemed not to have been submitted. The same applies when the procedure for exercising security interests referred to in that paragraph is revoked pursuant to the provisions of Article 63 of the Civil Execution Act as applied mutatis mutandis pursuant to Article 188 of that Act, or Article 129 of that Act as applied mutatis mutandis pursuant to Article 192 of that Act (including as applied mutatis mutandis pursuant to that Act and other laws and regulations concerning a procedure for compulsory execution).

(6)If, after an order of non-permission set forth in Article 189, paragraph (1) became final and binding, a petition for exercising security interests referred to in paragraph (1) has been withdrawn or dismissed, a bankruptcy trustee files a petition referred to in paragraph (1) of the preceding Article, the designated security interest holder who has filed the petition for exercising security interests may not submit the document or the electronic or magnetic record that certifies their filing of the petition for exercising security interests referred to in that paragraph, notwithstanding the provisions of paragraph (1).

Article 188(1)A designated security interest holder who has an objection to the petition referred to in Article 186, paragraph (1) may make an offer to a bankruptcy trustee within the period set forth in paragraph (1) of the preceding Article to the effect that the designated security interest holder or any other person will purchase the property referred to in Article 186, paragraph (3), item (i) (hereinafter referred to as a "purchase offer" in this Section).

(2)A purchase offer must be made by means of a document stating the following particulars:

(3)The offered purchase price must be not less than the sum obtained by adding the amount of proceeds referred to in Article 186, paragraph (3), item (ii) which is stated in the written petition to the amount equivalent to one-twentieth of the amount.

(4)If the property referred to in Article 186, paragraph (3), item (i) consists of two or more pieces of property, the amount of the offered purchase price set forth in paragraph (2), item (iii) allocated to each piece of property must not be below the amount of proceeds referred to in paragraph (3), item (ii) of that Article allocated to each respective piece of property.

(5)A purchase applicant must, upon making a purchase offer, provide a bankruptcy trustee with a guarantee of the amount and by the means specified by the Rules of the Supreme Court.

(6)The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to a purchase offer.

(7)A person who makes a purchase offer (or a purchase applicant if the person other than the person who makes a purchase offer is a purchase applicant) may withdraw the purchase offer within the period referred to in paragraph (1) of the preceding Article.

(8)When a purchase offer is made, a bankruptcy trustee must, after the period referred to in paragraph (1) of the preceding Article has expired, notify the court to the effect that they will sell the property referred to in Article 186, paragraph (3), item (i) to the purchase applicant. In such a case, if two or more purchase offers are made, a bankruptcy trustee must give notification to the effect that they will sell the property to the purchase applicant who has made the purchase offer with the highest offered purchase price (if there are two or more purchase offers with the highest offered purchase price, the purchase applicant who has made the first offer).

(9)In the case referred to in the preceding paragraph, a bankruptcy trustee must submit to the court the document referred to in paragraph (2) related to the purchase offer made within the period set forth in paragraph (1) of the preceding Article.

(10)When a purchase offer is made, in order to withdraw the petition referred to in Article 186, paragraph (1), a bankruptcy trustee must obtain consent from the purchase applicant (after the order of permission set forth in paragraph (1) of the following Article becomes final and binding, the purchaser prescribed in paragraph (2) of that Article).

Article 189(1)The court must, except when it makes an order of non-permission by reason that a designated security interest holder has submitted a document or an electronic or magnetic record that certifies their filing of a petition for exercise of security interests within the period referred to in Article 187, paragraph (1), make an order of permission referred to in Article 186, paragraph (1), designating the person specified in each of the following items in accordance with the category set forth in the respective items as the counterparty to the sale related to the permission:

(2)In the case set forth in item (ii) of the preceding paragraph, when the order of permission set forth in that paragraph has become final and binding, it is deemed that a bankruptcy trustee and the purchase applicant specified in that item (hereinafter referred to as the "purchaser" in this Section) related to the permission has concluded a sales contract with the same content as that stated or recorded in the document or the electronic or magnetic record referred to in Article 186, paragraph (4) (excluding the counter party to the sale). In such a case, the offered purchase price is deemed to be the amount of proceeds under the sales contract.

(3)When a judicial decision on the petition set forth in Article 186, paragraph (1) is made, a purchase applicant may (excluding the purchase applicant specified in paragraph (1), item (ii)), until the judicial decision becomes final and binding, withdraw the purchase offer related to them.

(4)An immediate appeal may be filed against a judicial decision on the petition referred to in Article 186, item (1).

(5)When a judicial decision on the petition referred to in Article 186, paragraph (1) or a judicial decision on the immediate appeal referred to in the preceding paragraph is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

Article 190(1)When an order of permission referred to in paragraph (1) of the preceding Article has become final and binding, the counterparty to the sale related to the permission must pay to the court the amount of money specified in each of the following items in accordance with the category of the cases set forth in the respective items by the due date set by the court:

(2)When payment of money pursuant to the provisions of item (ii) of the preceding paragraph is made, the amount of money equivalent to the amount of guarantee provided by the purchaser pursuant to the provisions of Article 188, paragraph (5) is allocated to proceeds.

(3)In the case referred to in the preceding paragraph, a bankruptcy trustee must immediately pay to the court the amount of money equivalent to the amount of guarantee referred to in that paragraph.

(4)In the case referred to in paragraph (1), item (i), the security interests held by designated security interest holders is to be extinguished when payment of money pursuant to the provisions of paragraph (1), item (i) is made, and in the case set forth in paragraph (1), item (ii), the security interests held by designated security interest holder is to be extinguished when payment of money pursuant to the provisions of paragraph (1), item (ii) and payment of money pursuant to the provisions of the preceding paragraph are made.

(5)When payment of money prescribed in the preceding paragraph is made, a court clerk must commission cancellation of the registrations of the security interests extinguished.

(6)If payment of money under the provisions of paragraph (1) is not made, the court must revoke the order of permission referred to in paragraph (1) of the preceding Article.

(7)In the case referred to in the preceding paragraph, the purchaser may not claim return of the guarantee referred to in paragraph (2).

Article 191(1)When payment of money prescribed in paragraph (4) of the preceding Article is made, the court must implement the distribution according to an electronic distribution list (meaning an electronic or magnetic record prepared pursuant to the provisions of Article 85, paragraph (3) of the Code of Civil Procedure applied mutatis mutandis pursuant to paragraph (4) that has been recorded in a file pursuant to the provisions of paragraph (5) of that Article applied mutatis mutandis pursuant to paragraph (4)) for distribution of the money to each designated security interest holder, except in the case prescribed in the following paragraph.

(2)When there is only one designated security interest holder or when there are two or more designated security interest holders and the money prescribed in paragraph (4) of the preceding Article is sufficient for paying the claims secured by the security interests held by those holders, the court, pursuant to the provisions of the Rules of the Supreme Court, prepares an electronic statement of delivery of the money (meaning an electronic or magnetic record prepared by the court clerk pursuant to the provisions of the Rules of the Supreme Court recording the amount of the payment money and surplus, the amounts of the principal of the claims, interest, and any other incidental claims of the claims secured by security rights held by each designated security interest holder and the order and amounts of delivery of payment money so that the payment money and surplus can be delivered; the same applies in the following paragraph), and delivers the payment money to the designated security interest holders and delivers any surplus to a bankruptcy trustee.

(3)If a court has prepared an electronic statement of delivery pursuant to the provisions of the preceding paragraph, the court must record the electronic statement of delivery in a file, pursuant to the provisions of the Rules of the Supreme Court.

(4)The provisions of Articles 85 through 86 and Articles 88 through 92 of the Civil Execution Act apply mutatis mutandis to the procedure for distribution referred to in paragraph (1), and the provisions of Article 88, Article 91, and Article 92 of that Act apply mutatis mutandis to the procedure for delivery of payment money pursuant to the provisions of paragraph (2).

Article 192(1)When any right of retention under the provisions of the Commercial Code or the Companies Act exists against the property that belongs to the bankruptcy estate at the time of commencement of bankruptcy proceedings, if the property is necessary for the business continued pursuant to the provisions of Article 36 or the recovery of the property otherwise contributes to maintaining or increasing the value of the bankruptcy estate, a bankruptcy trustee may make a demand to the holder of the right of retention that the right be extinguished.

(2)In order to make a demand under the provisions of the preceding paragraph, the amount of money equivalent to the value of the property referred to in that paragraph must be paid to the holder of the right of retention referred to in that paragraph.

(3)Permission of the court must be obtained in order to make a demand under the provisions of paragraph (1) and to make a payment prescribed in the preceding paragraph.

(4)If the permission referred to in the preceding paragraph is granted and the amount of payment prescribed in paragraph (2) is sufficient to cover the value of the property referred to in paragraph (1), the right of retention referred to in that paragraph is extinguished at the time when the payment is made or at the time when a demand under the provisions of paragraph (1) is made, whichever occurs later.

(5)In an action to request the return of the property set forth in paragraph (1) on the grounds that the right of retention referred to in that paragraph is extinguished pursuant to the provisions of the preceding paragraph, even if the amount of payment prescribed in paragraph (2) is not sufficient to cover the value of the property, upon the plaintiff's petition and when the court in charge of the action finds it appropriate, the court may order the holder of the right of retention referred to in paragraph (1) to return the property, on the condition that the amount of any shortage is to be paid within a reasonable period of time.

Article 193(1)A bankruptcy creditor may, as provided for by this Chapter, receive a distribution from the bankruptcy estate.

(2)A bankruptcy creditor must receive a distribution at the place where a bankruptcy trustee performs their duties; provided, however, that this does not preclude other provisions to be made by an agreement between a bankruptcy trustee and a bankruptcy creditor.

(3)A bankruptcy trustee must, when having made a distribution, submit to the court a report stating the amount distributed. In this case, the court clerk must, pursuant to the provisions of the Rules of the Supreme Court, record the amount stated in the report in the electronic schedule of bankruptcy creditors.

Article 194(1)Distributions are to be made in the following order among bankruptcy claims and in the order of priority prescribed in Article 98, paragraph (2) among preferred bankruptcy claims:

(2)With regard to bankruptcy claims eligible for distribution with the same priority, distribution is made in proportion to the amount of each claim.

Article 195(1)A bankruptcy trustee must, after the ordinary period for investigation has expired or the ordinary date of investigation has ended and after realization has been completed for property that belongs to the bankruptcy estate, make a distribution under the provisions of this Section (hereinafter referred to as a "final distribution" in this Chapter and the following Chapter) to holders of filed bankruptcy claims without delay, except in the case prescribed in Article 217, paragraph (1).

(2)A bankruptcy trustee must obtain permission of a court clerk in order to make a final distribution.

(3)The court may, after hearing opinions of a bankruptcy trustee, set the time for making a final distribution in advance.

Article 196(1)A bankruptcy trustee must, when permission under the provisions of paragraph (2) of the preceding Article is granted, prepare a distribution list stating the following particulars and submit it to the court without delay:

(2)The particulars set forth in item (ii) of the preceding paragraph are stated by distinguishing preferred bankruptcy claims, subordinate bankruptcy claims, and consensually-subordinated bankruptcy claims from other bankruptcy claims, and with regard to preferred bankruptcy claims, the particulars must be stated in the order of priority prescribed in Article 98, paragraph (2).

(3)With regard to bankruptcy claims secured by a revolving mortgage which pertains to a right of separate satisfaction, a bankruptcy trustee must state the claims in the distribution list even if the bankruptcy creditor who holds the bankruptcy claims does not prove to the bankruptcy trustee the amount of the claims for which payment cannot be received by exercising the revolving mortgage. In such a case, the part of the amount of the bankruptcy claims on the day on which permission under the provisions of paragraph (2) of the preceding Article was granted, which exceeds the maximum amount, is to be the amount of the claims that may enter into the procedure for a final distribution.

(4)The provisions of the preceding paragraph apply mutatis mutandis to a person who holds a mortgage prescribed in Article 108, paragraph (2) (limited to one that is a revolving mortgage).

Article 197(1)A bankruptcy trustee must, without delay after submitting a distribution list to the court pursuant to the provisions of paragraph (1) of the preceding Article, make a public notice of the total amount of the claims that may enter into the procedure for a final distribution and the amount available for a final distribution, or give a notice of those particulars to holders of filed bankruptcy claims.

(2)The notice under the provisions of the preceding paragraph is deemed to have arrived at the time when the notice should have normally arrived.

(3)When the time at which the notice given under the provisions of paragraph (1) should have normally reached the holders of filed bankruptcy claims has passed, a bankruptcy trustee must notify the court to that effect without delay.

Article 198(1)In order to participate in the procedure for a final distribution with regard to a denied or disputed bankruptcy claim (excluding those prescribed in Article 129, paragraph (1)), the bankruptcy creditor who holds the denied or disputed bankruptcy claim must, within two weeks from the day on which the public notice under the provisions of paragraph (1) of the preceding Article becomes effective or the day on which the notification is made under the provisions of paragraph (3) of that Article, prove to a bankruptcy trustee the fact that the proceedings for assessment based on a petition for the finalization of the denied or disputed bankruptcy claim, the court proceedings of an action to oppose bankruptcy claim assessment, or the court proceedings of an action taken over pursuant to the provisions of Article 127, paragraph (1) are pending.

(2)In order to participate in the procedure for a final distribution with regard to a bankruptcy claim that is a claim subject to a condition precedent or claim which may arise in the future, the bankruptcy claim is required to become enforceable within the period prescribed in the preceding paragraph (hereinafter referred to as the "period of exclusion concerning a final distribution" in this Section and Section 5).

(3)In order to participate in the procedure for a final distribution, a holder of a right of separate satisfaction must, within the period of exclusion concerning a final distribution, prove to a bankruptcy trustee the fact that the whole or part of the claim secured by a security right prescribed in Article 65, paragraph (2) which pertains to the right of separate satisfaction is no longer secured after the commencement of bankruptcy proceedings, or prove the amount of the claim for which payment cannot be received by exercising the security right, except in the case referred to in the following paragraph.

(4)With regard to bankruptcy claims secured by a revolving mortgage that are stated in the distribution list pursuant to the provisions of the first sentence of Article 196, paragraph (3) (including as applied mutatis mutandis pursuant to paragraph (4) of that Article), except when the amount of the claims for which payment cannot be received by exercising the security right is proven within the period of exclusion concerning a final distribution, the part of the amount of the claims that may enter into the procedure for a final distribution stated in the distribution list under the provisions of the second sentence of paragraph (3) of that Article (including as applied mutatis mutandis pursuant to paragraph (4) of that Article) is deemed to be the amount of claims for which payment cannot be received.

(5)The provisions of paragraph (3) apply mutatis mutandis to a holder of a quasi-right of separate satisfaction.

Article 199(1)In the following cases, a bankruptcy trustee must immediately correct the distribution list:

(2)The provisions of item (iii) of the preceding paragraph apply mutatis mutandis to a holder of a quasi-right of separate satisfaction.

Article 200(1)A bankruptcy creditor who is dissatisfied with an entry in the distribution list may raise an objection to the court within one week after the period of exclusion concerning a final distribution expires.

(2)The court must, when it finds an objection raised under the provisions of the preceding paragraph well-grounded, order a bankruptcy trustee to correct the distribution list.

(3)An immediate appeal may be filed against a judicial decision on the objection raised under the provisions of paragraph (1). In such a case, the period for filing an immediate appeal against an order to order correction of the distribution list is calculated from the day on which it becomes possible for an interested person to make a request for inspection of the electronic judgment pursuant to the provisions of Article 11-2, paragraph (1).

(4)When a judicial decision to dismiss the objection raised under the provisions of paragraph (1) and a judicial decision on the immediate appeal referred to in the first sentence of the preceding paragraph (excluding an order to order correction of the distribution list) are made, the electronic judgments must be served upon the parties concerned.

Article 201(1)A bankruptcy trustee must, without delay after the period prescribed in paragraph (1) of the preceding Article has expired (if an objection under the provisions of that paragraph is raised, after the proceedings of the objection have been closed), determine the amount of distribution to be given to each bankruptcy creditor who may participate in the procedure for a final distribution.

(2)A bankruptcy trustee must make a distribution of any amount deposited pursuant to the provisions of Article 70 in the interest of a bankruptcy creditor who was unable to participate in the procedure for a final distribution by reason of the failure to conform to the provisions of Article 198, paragraph (2), to other bankruptcy creditors as part of a final distribution.

(3)With regard to a bankruptcy claim that is a claim subject to a condition subsequent, if the condition is not met within the period of exclusion concerning a final distribution, the security provided under the provisions of Article 69 ceases to be effective, and the amount deposited pursuant to the provisions of that Article must be paid to the bankruptcy creditor who holds the bankruptcy claim.

(4)A bankruptcy creditor who has received payment pursuant to the provisions of Article 101, paragraph (1) or a bankruptcy creditor who has received payment prescribed in Article 109 may not receive a final distribution until any other bankruptcy creditor with the same priority as the creditor receives a distribution at the same proportion as the payment they have received.

(5)When the amount of distribution to be given to each bankruptcy creditor is determined pursuant to the provisions of paragraph (1), if, with regard to a bankruptcy creditor who has not made a notification under the provisions of Article 111, paragraph (1), item (iv) or Article 113, paragraph (2), the amount of distribution determined for the bankruptcy creditor is less than the amount specified by the Rules of the Supreme Court as prescribed in Article 111, paragraph (1), item (iv), a bankruptcy trustee must make a final distribution of the amount of distribution to bankruptcy creditors other than the bankruptcy creditor. In such a case, the amount of distribution to be given to those other bankruptcy creditors must be determined for the amount of distribution.

(6)If any property available for a final distribution is newly discovered before giving a notice of the amount of distribution pursuant to the provisions of the following paragraph, a bankruptcy trustee must correct the distribution list without delay.

(7)A bankruptcy trustee must give a notice of the amount of distribution determined pursuant to the provisions of paragraph (1) through the preceding paragraph to each bankruptcy creditor who may participate in the procedure for a final distribution (excluding a bankruptcy creditor who may not receive a final distribution pursuant to the provisions of paragraph (5)).

Article 202A bankruptcy trustee must make a deposit of the following amounts of distribution in the interest of the bankruptcy creditor who is to receive the distribution:

Article 203A holder of claim on the estate who is unknown to a bankruptcy trustee at the time when a notice of the amount of distribution pursuant to the provisions of Article 201, paragraph (7) is given may not receive payment by using the amount available for a final distribution.

Article 204(1)When a final distribution may be made pursuant to the provisions of Article 195, paragraph (1), a court clerk may, in the following cases, upon the petition of a bankruptcy trustee, permit distribution under the provisions of this Section (hereinafter referred to as a "simplified distribution" in this Chapter and the following Chapter) in lieu of a final distribution:

(2)When permission under the provisions of the preceding paragraph is granted, a bankruptcy trustee must, without delay after submitting the distribution list to the court pursuant to the provisions of Article 196, paragraph (1) as applied mutatis mutandis pursuant to the following Article following the deemed replacement of terms, determine the estimated amount of distribution to be given to each holder of a filed bankruptcy claim, and give a notice to each holder of filed a bankruptcy claim of the total amount of claims that may enter into the procedure for a simplified distribution, the amount available for a simplified distribution, and the estimated amount of distribution.

(3)The notice under the provisions of the preceding paragraph is deemed to have reached the addressee at the time when the notice should have normally arrived.

(4)When the time at which the notice given under the provisions of paragraph (2) should have normally reached the holders of filed bankruptcy claims has passed, a bankruptcy trustee must notify the court to that effect without delay.

Article 205With regard to a simplified distribution, the provisions of the preceding Section (excluding Article 195, Article 197, Article 200, paragraphs (3) and (4), and Article 201, paragraph (7)) apply mutatis mutandis. In such a case, the phrase "permission under the provisions of paragraph (2) of the preceding Article" in Article 196, paragraphs (1) and (3) is deemed to be replaced with "permission under the provisions of Article 204, paragraph (1)"; in Article 198, paragraph (1), the phrase "the day on which the public notice made under the provisions of paragraph (1) of the preceding Article becomes effective or the day on which the notification is made under the provisions of paragraph (3) of that Article" is deemed to be replaced with "the day on which the notification is made under the provisions of Article 204, paragraph (4)," and the phrase "within two weeks" is deemed to be replaced with "within one week"; the phrase "after the proceedings of the objection have been closed" in Article 201, paragraph (1) is deemed to be replaced with "after an order on the objection is made"; the phrase "before giving a notice of the amount of distribution under the provisions of the following paragraph" in Article 201, paragraph (6) is deemed to be replaced with "within the period prescribed in paragraph (1) of the preceding Article"; the phrase "when a notice of the amount of distribution is given under the provisions of paragraph (7) of the preceding Article" in Article 202, item (i) and, item (ii) and the phrase "when a notice of the amount of distribution under the provisions of Article 201, paragraph (7) is given" in Article 203 is deemed to be replaced with "when the period prescribed in Article 200, paragraph (1) expires."

Article 206When permission under the provisions of Article 204, paragraph (1), item (iii) is granted, a bankruptcy trustee must, when giving a notice pursuant to the provisions of paragraph (2) of that Article, simultaneously give a notice that a bankruptcy creditor who has any objection to the implementation of a simplified distribution is required to make an objection to the court within one week from the date of notification under the provisions of paragraph (4) of that Article. In such a case, if an objection is made by a holder of a filed bankruptcy claim within one week from the date of notification under the provisions of that paragraph, a court clerk must rescind the permission.

Article 207Permission for a simplified distribution under the provisions of Article 204, paragraph (1) may not be granted if an interim distribution prescribed in Article 209, paragraph (1) has been made.

Article 208(1)When a final distribution may be made pursuant to the provisions of Article 195, paragraph (1), a court clerk may, upon the petition of a bankruptcy trustee, permit distribution under the provisions of this Article (hereinafter referred to as a "consensual distribution" in this Chapter and the following Chapter) in lieu of a final distribution. In such a case, a bankruptcy trustee may file a petition only when all of the holders of filed bankruptcy claims have consented to the distribution list, the amount of distribution, and the time and means of distribution determined by the bankruptcy trustee.

(2)When permission under the provisions of the preceding paragraph is granted, a bankruptcy trustee may make a consensual distribution to the holders of filed bankruptcy claims referred to in the second sentence of that paragraph according to the distribution list, the amount of distribution, and the time and means of distribution set forth in the second sentence of that paragraph.

(3)With regard to a consensual distribution, the provisions of Article 196, paragraphs (1) and (2), and Article 203 apply mutatis mutandis. In such a case, the phrase "when permission under the provisions of paragraph (2) of the preceding Article is granted, without delay" in Article 196, paragraph (1) is deemed to be replaced "in advance," and the phrase "when a notice of the amount of distribution under the provisions of Article 201, paragraph (7) is given" in Article 203 is deemed to be replaced with "when permission under the provisions of Article 208, paragraph (1) is granted."

Article 209(1)When a bankruptcy trustee finds after the ordinary period for investigation has expired or the ordinary date of investigation has ended and before realization is completed for property that belongs to the bankruptcy estate, that money suitable for distribution that belongs to the bankruptcy estate exists, the bankruptcy trustee may make a distribution under the provisions of this Section (hereinafter referred to as an "interim distribution" in this Section) to holders of filed bankruptcy claims, prior to a final distribution.

(2)A bankruptcy trustee must obtain permission of the court in order to make an interim distribution.

(3)With regard to an interim distribution, the provisions of Article 196, paragraphs (1) and (2), Article 197, Article 198, paragraph (1), Article 199, paragraph (1), items (i) and (ii), Article 200, Article 201, paragraph (4), and Article 203 apply mutatis mutandis. In such a case, the phrase "permission under the provisions of paragraph (2) of the preceding Article" in Article 196, paragraph (1) is deemed to be replaced with "permission under the provisions of Article 209, paragraph (2)," the phrase "period of exclusion concerning a final distribution" in the items of Article 199, paragraph (1) and Article 200, paragraph (1) is deemed to be replaced with "period of exclusion concerning an interim distribution prescribed in Article 210, paragraph (1)," and the phrase "amount of distribution under the provisions of Article 201, paragraph (7)" in Article 203 is deemed to be replaced with "percentage of distribution under the provisions of Article 211."

Article 210(1)In order to participate in the procedure for an interim distribution, a holder of a right of separate satisfaction must, within the period prescribed in Article 198, paragraph (1) as applied mutatis mutandis pursuant to paragraph (3) of the preceding Article (hereinafter referred to as the "period of exclusion concerning an interim distribution" in this Section), prove to a bankruptcy trustee the fact that they have commenced the disposal of the collateral for the right of separate satisfaction, and also make a prima facie showing of the amount of the claim for which payment cannot be received by the disposal to a bankruptcy trustee.

(2)The provisions of the preceding paragraph apply mutatis mutandis to a holder of a quasi-right of separate satisfaction.

(3)When proof is made and a prima facie showing is made within the period of exclusion concerning an interim distribution with regard to the particulars prescribed in paragraph (1) (including as applied mutatis mutandis pursuant to the preceding paragraph), a bankruptcy trustee must immediately correct the distribution list.

Article 211A bankruptcy trustee must, without delay after the period prescribed in Article 200, paragraph (1) as applied mutatis mutandis pursuant to Article 209, paragraph (3) has expired (in cases where an objection under the provisions of Article 200, paragraph (1) is raised, after an order on the objection is made), determine the percentage of distribution and give notice of the percentage to each bankruptcy creditor who may participate in the procedure for an interim distribution.

Article 212(1)With regard to a bankruptcy claim that is a claim subject to a condition subsequent, an interim distribution may not be received unless reasonable security is provided.

(2)With regard to the bankruptcy claim set forth in the preceding paragraph, if the condition is not met within the period of exclusion concerning a final distribution, the security provided under the provisions of that paragraph ceases to be effective.

Article 213With regard to a bankruptcy claim that was unable to enter into the procedure for an interim distribution on the grounds of failure to prove the particular prescribed in Article 198, paragraph (1) as applied mutatis mutandis pursuant to Article 209, paragraph (3), if the bankruptcy creditor who holds the bankruptcy claim has proven the particular within the period of exclusion concerning a final distribution or within the period of exclusion concerning an interim distribution that may be made after the interim distribution, the bankruptcy creditor, in the final distribution or a subsequent interim distribution that may be made after the previous interim distribution, may receive a distribution at the amount that they could have received in the previous interim distribution, in preference to other bankruptcy creditors with the same priority. The same applies when a holder of a right of separate satisfaction (including a holder of a quasi-right of separate satisfaction) who was unable to participate in the procedure for an interim distribution on the grounds of failure to prove or make a prima facie showing of the particular prescribed in Article 210, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) has proved and made a prima facie showing of the particular within the period of exclusion concerning a subsequent interim distribution that may be made after the interim distribution.

Article 214(1)A bankruptcy trustee who seeks to make an interim distribution must make a deposit of the amount of distribution to the following bankruptcy claims:

(2)When a deposit of the amount of distribution to a bankruptcy claim set forth in item (i) or (ii) of the preceding paragraph is made pursuant to the provisions of those items, a bankruptcy trustee must, when making a deposit of the amount of distribution to the bankruptcy claim pursuant to the provisions of Article 202, item (i) or (ii), deposit the amount of distribution deposited, in the interest of the bankruptcy creditor who is to receive it.

(3)When a deposit of the amount of distribution to a bankruptcy claim set forth in item (iii) or (iv) of paragraph (1) is made pursuant to the provisions of those items, if the bankruptcy creditor or holder of a right of separate satisfaction (including a holder of a quasi-right of separate satisfaction) who holds the bankruptcy claim was unable to participate in the procedure for a final distribution due to the failure to conform to the provisions of Article 198, paragraph (2) or prove the particular prescribed in paragraph (3) of that Article (including as applied mutatis mutandis pursuant to paragraph (5) of that Article), a bankruptcy trustee must make a final distribution of the amount of distribution deposited to other bankruptcy creditors.

(4)When a deposit of the amount of distribution to a bankruptcy claim set forth in paragraph (1), item (v) is made pursuant to the provisions of that item, if the condition attached to the bankruptcy claim is not met within the period of exclusion concerning a final distribution, a bankruptcy trustee must pay the amount of distribution deposited to the bankruptcy creditor who holds the bankruptcy claim.

(5)For the purpose of application of the provisions of Article 201, paragraph (5) in cases where a deposit of the amount of distribution to a bankruptcy claim set forth in paragraph (1), item (v) is made pursuant to the provisions of that item, in Article 201, paragraph (5), the phrase "the amount of distribution determined for the bankruptcy creditor is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1), item (iv)" is deemed to be replaced with "the total of the amount of distribution determined for the bankruptcy creditor and the amount of distribution to a bankruptcy claim set forth in item (vi) of Article 214, paragraph (1) deposited by a bankruptcy trustee pursuant to the provisions of that item is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1), item (iv)," and the phrase "the amount of distribution" is deemed to be replaced with "the sum."

Article 215(1)If, after a notice of the amount of distribution pursuant to the provisions of Article 201, paragraph (7) is given (in the case of a simplified distribution, after the period prescribed in Article 200, paragraph (1) as applied mutatis mutandis pursuant to Article 205 expires, and in the case of a consensual distribution, after the permission pursuant to the provisions of Article 208, paragraph (1) is granted), a considerable amount of property available for a new distribution is confirmed, a bankruptcy trustee, with permission of the court, must make a distribution under the provisions of this Article (hereinafter referred to as a "subsequent distribution" in this Article) to holders of filed bankruptcy claims, in addition to a final distribution, simplified distribution, or consensual distribution. The same applies after an order of termination of bankruptcy proceedings is made.

(2)With regard to a subsequent distribution, the provisions of Article 201, paragraphs (4) and (5), Article 202, and Article 203 apply mutatis mutandis. In such a case, the term "provisions of paragraph (1)" in Article 201, paragraph (5) is deemed to be replaced with "provisions of Article 215, paragraph (4)," and the term "paragraph (7) of the preceding Article" in Article 202, items (i) and (ii) and the term "Article 201, paragraph (7)" in Article 203 is deemed to be replaced with "Article 215, paragraph (5)."

(3)A subsequent distribution is made according to the distribution list prepared for a final distribution, simplified distribution, or consensual distribution.

(4)A bankruptcy trustee must, when permission pursuant to the provisions of paragraph (1) is granted, determine the amount of distribution to each bankruptcy creditor who may participate in the procedure for a subsequent distribution without delay.

(5)A bankruptcy trustee must give notice of the amount of distribution determined pursuant to the provisions of the preceding paragraph to each bankruptcy creditor who may participate in the procedure for a subsequent distribution (excluding a bankruptcy creditor who may not receive a subsequent distribution pursuant to the provisions of Article 201, paragraph (5) as applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms).

(6)A bankruptcy trustee must, without delay after making a subsequent distribution, make a report of accounts to the court in writing.

(7)In the case referred to in the preceding paragraph, if there is a vacancy in the office of a bankruptcy trustee, the report of accounts set forth in that paragraph must be made by a successor bankruptcy trustee, notwithstanding the provisions of that paragraph.

Article 222(1)A petition to commence bankruptcy proceedings under the provisions of this Act against inherited property may be filed only if the decedent's address as of the time of commencement of succession or property that belongs to the inherited property exists in Japan.

(2)A bankruptcy case relating to an inherited property is subject to the jurisdiction of the district court that has jurisdiction over the decedent's domicile as of the time of commencement of succession.

(3)If there is no court with jurisdiction pursuant to the provisions of the preceding paragraph, the bankruptcy case relating to an inherited property is subject to the jurisdiction of the district court that has jurisdiction over the locality of property that belongs to the inherited property (in the case of a claim, the place where demand by litigation may be made).

(4)For the purpose of application of the provisions of Article 5, paragraphs (8) and (9), and Article 7, item (v) to a bankruptcy case relating to an inherited property, the term "paragraphs (1) and (2)" in Article 5, paragraphs (8) and (9) is deemed to be replaced with "Article 222, paragraphs (2) and (3)," and the phrase "paragraph (1) or (2) of that Article" in Article 7, item (v) is deemed to be replaced with "Article 222, paragraphs (2) and (3)."

(5)If two or more district courts have jurisdiction over a bankruptcy case relating to an inherited property pursuant to the provisions of the preceding three paragraphs, the bankruptcy case is subject to the jurisdiction of the district court with which the first petition to commence bankruptcy proceedings is filed.

Article 223For the purpose of application of Article 30, paragraph (1) to an inherited property, the phrase "when it finds a fact constituting the grounds for the commencement of bankruptcy proceedings" in Article 30, paragraph (1) is deemed to be replaced with "when it finds it impossible to pay debts to inheritance obligees and to legatees in full with the inherited property."

Article 224(1)With regard to inherited property, in addition to an inheritance obligee or a legatee, an heir, administrator of the inherited property, liquidator of the inherited property, or executor (limited to an executor who has a right to conduct acts necessary for the administration of the inherited property; hereinafter the same applies in this Section) may file a petition to commence bankruptcy proceedings.

(2)When a person set forth in each of the following items files a petition to commence bankruptcy proceedings against the inherited property, they must make a prima facie showing of the fact specified in the respective items:

Article 225A petition to commence bankruptcy proceedings may be filed against an inherited property only within the period during which a request for division of property may be made pursuant to the provisions of Article 941, paragraph (1) of the Civil Code; provided, however, that if qualified acceptance is made or division of property is conducted, a petition to commence bankruptcy proceedings may be made until payment to inheritance obligees and legatees is completed.

Article 226(1)When succession has commenced with regard to a debtor after a petition to commence bankruptcy proceedings is filed and before an order of commencement of bankruptcy proceedings is made, the court may, upon the petition of an inheritance obligee, a legatee, an heir, an administrator of the inherited property, liquidator of the inherited property, or executor, make an order to continue the bankruptcy proceedings against the inherited property.

(2)The petition for continuation prescribed in the preceding paragraph must be filed within one month after the succession commences.

(3)The bankruptcy proceedings prescribed in paragraph (1) is closed, if a petition for continuation prescribed in paragraph (1) is not filed within the period referred to in the preceding paragraph, at the time when the period expires, and if a petition for continuation prescribed in paragraph (1) is made within the period set forth in the preceding paragraph and a judicial decision to dismiss the petition becomes final and binding, at the time when the decision becomes final and binding.

(4)An immediate appeal may be filed against a judicial decision to dismiss the petition for continuation prescribed in paragraph (1).

Article 227When succession has commenced with regard to the bankrupt after an order of commencement of bankruptcy proceedings is made, the court continues the bankruptcy proceedings against the inherited property.

Article 228An order of commencement of bankruptcy proceedings against an inherited property does not preclude qualified acceptance or division of property; provided, however, that the procedures for qualified acceptance or division of property is stayed until an order of revocation of the order of commencement of bankruptcy proceedings or an order of discontinuance of bankruptcy proceedings becomes final and binding, or an order of termination of bankruptcy proceedings is made.

Article 229(1)If an order of commencement of bankruptcy proceedings is made against an inherited property, any and all property that belongs to the inherited property (irrespective of whether or not it exists in Japan) is to constitute the bankruptcy estate. In such a case, rights that the decedent held vis-à-vis an heir are deemed not to have been extinguished.

(2)If an order of commencement of bankruptcy proceedings is made against inherited property after an heir has disposed of all or a part of the inherited property, rights that the heir holds with regard to counter-performance belong to the bankruptcy estate.

(3)In the case prescribed in the preceding paragraph, if the heir has already received the counter-performance set forth in that paragraph, the heir must return the counter-performance to the bankruptcy estate; provided, however, that if the heir did not know, at the time of receiving the counter-performance, the fact constituting the grounds for the commencement of bankruptcy proceedings or the fact that the filing of a petition to commence bankruptcy proceedings has been made, it is sufficient for the heir to return the benefit that they retain.

Article 230(1)If an order of commencement of bankruptcy proceedings is made against an inherited property, the following persons must, upon the request of a bankruptcy trustee or creditor committee, or a request based on a resolution at a creditor meeting, give a necessary explanation concerning bankruptcy:

(2)The provisions of the preceding paragraph apply mutatis mutandis to a person who was any of the persons listed in item (ii) or (iii) of that paragraph.

(3)The provisions of Article 37 and Article 38 apply mutatis mutandis to heirs and their statutory agent and manager in cases where an order of commencement of bankruptcy proceedings is made against the inherited property.

Article 231(1)If an order of commencement bankruptcy proceedings is made against an inherited property, an inheritance obligee and a legatee may, even when an order of commencement of bankruptcy proceedings is made against an heir, participate in bankruptcy proceedings with regard to the whole amount of their claims.

(2)If an order of commencement of bankruptcy proceedings is made against an inherited property, claims held by an inheritance obligee take precedence over claims held by a legatee.

Article 232(1)If an order of commencement of bankruptcy proceedings is made against an inherited property, rights that an heir held vis-à-vis the decedent is deemed not to have been extinguished. In such a case, an heir has the same rights as an inheritance obligee with regard to a claim that they held vis-à-vis the decedent.

(2)In the case prescribed in the preceding paragraph, when an heir has made payment to an inheritance obligee or conducted any other act that causes the debts to be extinguished with their own property, the heir may exercise rights that the inheritance obligee held vis-à-vis the decedent, to the extent of the amount paid thereby.

Article 233If an order of commencement of bankruptcy proceedings is made against an inherited property, an heir's creditors may not exercise their rights as bankruptcy creditors.

Article 234For the purpose of application of the provisions of Chapter VI, Section 2, in cases where an order of commencement of bankruptcy proceedings is made against an inherited property, an act conducted by the decedent, an heir, an administrator of the inherited property, liquidator of the inherited property, or an executor with respect to the inherited property is deemed to have been conducted by the bankrupt.

Article 235(1)If an order of commencement of bankruptcy proceedings is made against an inherited property, if an act concerning the provision of security or extinguishment of debt to a legatee would prejudice a bankruptcy creditor who holds a claim that takes precedence over the legatee's claim, the act may be avoided.

(2)The provisions of Article 167, paragraph (2) apply mutatis mutandis when the act set forth in the preceding paragraph is avoided pursuant to the provisions of that paragraph. In such a case, the phrase "that the act would prejudice a bankruptcy creditor" in Article 167, paragraph (2) is deemed to be replaced with "that the act would prejudice a bankruptcy creditor set forth in Article 235, paragraph (1)."

Article 236If an order of commencement of bankruptcy proceedings is made against an inherited property, if an act conducted by the decedent, an heir, an administrator of an inherited property, liquidator of the inherited property, or an executor with regard to the inherited property is avoided, a bankruptcy trustee must, after making payment to the inheritance obligee, distribute residual assets to the other party to the avoided act, in accordance with the value of the other party's right.

Article 237(1)A petition referred to in Article 218, paragraph (1) with regard to bankruptcy of an inherited property is to be filed by an heir.

(2)If there are two or more heirs, each heir may file the petition referred to in the preceding paragraph.

Article 238(1)If inheritance commences with regard to the bankrupt before an order of commencement of bankruptcy proceedings is made, unconditional acceptance of inheritance made by the bankrupt after an order of commencement of bankruptcy proceedings is made has the effect of qualified acceptance vis-à-vis the bankruptcy estate. The same applies to renunciation of inheritance made by the bankrupt after an order of commencement of bankruptcy proceedings is made.

(2)A bankruptcy trustee may, notwithstanding the provisions of the second sentence of the preceding paragraph, acknowledge the effect of renunciation of inheritance. In such a case, a bankruptcy trustee must, within three months after the time when they came to know the fact that inheritance had been renounced, make a statement to the family court to that effect.

Article 239An order of commencement of bankruptcy proceedings against an heir does not preclude qualified acceptance or division of property; provided, however, that if no heir other than the heir in question has the authority to conduct acts necessary for the payment of debts with regard to the inherited property, the procedures for qualified acceptance or division of property is stayed until an order of revocation of the order of commencement of bankruptcy proceedings or an order of discontinuance of bankruptcy proceedings becomes final and binding, or an order of termination of bankruptcy proceedings is made.

Article 240(1)If an order of commencement of bankruptcy proceedings is made against an heir and a legatee may, even when division of property is made or an order of commencement of bankruptcy proceedings is made against the inherited property, participate in the bankruptcy proceedings with regard to the whole amount of their claims.

(2)If an order of commencement of bankruptcy proceedings is made against an heir and an order of commencement of bankruptcy proceedings is made against the inherited property, with regard to the heir's bankruptcy estate, claims held by the heir's creditors has precedence over claims held by an inheritance obligee and a legatee.

(3)If an order of commencement of bankruptcy proceedings is made against an heir based on a petition to commence bankruptcy proceedings filed within the period prescribed in Article 225, claims held by the heir's creditors with regard to the heir's own property, have precedence over claims held by an inheritance obligee and a legatee, and claims held by an inheritance obligee and a legatee with regard to the inherited property, have precedence over claims held by the heir's creditors.

(4)If an order of commencement of bankruptcy proceedings is made against an heir and the heir has made qualified acceptance, an inheritance obligee and a legatee may not exercise their rights over the heir's own property as bankruptcy creditors. The same applies when unconditional acceptance of inheritance has the effect of qualified acceptance pursuant to the provisions of Article 238, paragraph (1).

Article 241(1)An inheritance obligee or a legatee may, even when they, by exercising their rights in the procedures for qualified acceptance or division of property, have received payment of their bankruptcy claims after an order of commencement bankruptcy proceedings is made against an heir, participate in bankruptcy proceedings with regard to the amount of the claims at the time before receiving the payment. The same applies when an heir's creditor, by exercising their right in the procedure for division of property, has received payment of their bankruptcy claim after an order of commencement of bankruptcy proceedings is made against the heir.

(2)The inheritance obligee or legatee, or heir's creditor referred to in the preceding paragraph may not receive a distribution through bankruptcy proceedings until any other bankruptcy creditor with the same priority as them receives a distribution of the same proportion of payment they have received (if there are two or more heirs, the payment is limited to the part corresponding to the inheritance share of the heir who has received the order of commencement of bankruptcy proceedings; the same applies in the following paragraph).

(3)The inheritance obligee or legatee, or heir's creditor referred to in paragraph (1) may not exercise their voting rights with regard to the amount of the claims for which they received payment under the preceding paragraph.

Article 242(1)If, after an order of commencement of bankruptcy proceedings is made against an heir, the heir has made qualified acceptance or division of property has been conducted with regard to the heir, a bankruptcy trustee must administer and dispose of the inherited property separately from the heir's own property. The same applies if an order of commencement of bankruptcy proceedings is made against an heir after qualified acceptance was made or division of property was conducted.

(2)If there are any residual assets after a bankruptcy trustee has completed the administration and disposal of the inherited property pursuant to the provisions of the preceding paragraph, the part of the residual assets that should belong to the heir is deemed to be the heir's own property. In such a case, a bankruptcy trustee must supplement the bankruptcy estate's inventory of assets and balance sheet with regard to the residual assets.

(3)The provisions of the first sentence of paragraph (1) and the preceding paragraph apply mutatis mutandis if unconditional acceptance has the effect of qualified acceptance pursuant to the provisions of Article 238, paragraph (1) and the case referred to in Article 240, paragraph (3).

Article 243The provisions of the preceding Section apply mutatis mutandis if an order of commencement of bankruptcy proceedings is made against a universal legatee.

Article 244(1)If a particular legacy was given to a bankrupt before an order of commencement of bankruptcy proceedings is made, when the bankrupt has not accepted or renounced the legacy by the time the order is made, a bankruptcy trustee may accept or renounce the legacy on behalf of the bankrupt.

(2)The provisions of Article 987 of the Civil Code apply mutatis mutandis in the case referred to in the preceding paragraph.

Article 248(1)A debtor who is an individual (or the bankrupt after an order of commencement bankruptcy proceedings is made; hereinafter the same applies in this Section, except for paragraph (4)) may, 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 of commencement of bankruptcy proceedings becomes final and binding, file a petition to the bankruptcy court for grant of discharge.

(2)When the debtor referred to in the preceding paragraph (hereinafter referred to 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.

(3)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.

(4)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, upon filing the petition to commence bankruptcy proceedings, has manifested their intention to the contrary.

(5)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).

(6)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.

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

Article 249(1)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 made, 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 made, until a judicial decision on the petition becomes final and binding, it is not allowed to enforce a compulsory execution, 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 (hereinafter referred to as "compulsory execution, etc. based on a bankruptcy claim" in this Article), or to file a petition for a property 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 compulsory execution, etc. or disposition based on a bankruptcy claim already initiated against the bankrupt's property and property disclosure procedure and procedure for acquiring information from a third party based on a bankruptcy claim already initiated against the bankrupt is to be stayed.

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

(3)In the case referred to in paragraph (1), the prescription period does not expire with regard to a bankruptcy claim set forth 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:

Article 250(1)The court may have a bankruptcy trustee conduct an investigation on the existence or nonexistence of any of the grounds set forth in the items of Article 252, paragraph (1) or the circumstances to be considered when determining whether or not to make an order grant of discharge, and report the results of the investigation.

(2)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.

Article 251(1)When a petition to grant discharge is filed, after an order of commencement of bankruptcy proceedings is made, the court must specify a period during which a bankruptcy trustee and bankruptcy creditors (excluding those who hold claims set forth in the items of Article 253, paragraph (1); the same applies in the following paragraph, paragraph (4) of the following Article, and Article 254) may state their opinions to the court with regard to whether or not it is appropriate to make an order to grant discharge to the bankrupt.

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

(3)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.

Article 252(1)The court makes an order of grant of discharge if the bankrupt does not fall under any of the cases set forth in the following items:

(2)Notwithstanding the provisions of the preceding paragraph, even if the bankrupt falls under any of the cases set forth in the items of that paragraph, the court may, when it finds it appropriate to grant a discharge taking into consideration the developments that led to making an order of commencement of bankruptcy proceedings and all other circumstances, make an order of grant of discharge.

(3)When an order of grant of discharge is made, a court clerk must, pursuant to the provisions of the Rules of the Supreme Court, prepare an electronic or magnetic record recording the main text of the order and record it in a file.

(4)The court must, when it has made an order of grant of discharge, immediately serve the electronic judgment upon the bankrupt and a bankruptcy trustee and serve the electronic or magnetic record recorded in a file pursuant to the provisions of the preceding paragraph upon bankruptcy creditors. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply with regard to the service of an electronic judgment.

(5)The court must, when it has made an order of non-grant of discharge, immediately serve the electronic judgment upon the bankrupt. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(6)An immediate appeal may be filed against a judicial decision on a petition for grant of discharge.

(7)Where a judicial decision on the immediate appeal set forth in the preceding paragraph is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(8)An order of grant of discharge does not become effective unless it becomes final and binding.

Article 253(1)When an order of grant of discharge becomes final and binding, the bankrupt is discharged from their liabilities for bankruptcy claims, except for distribution in bankruptcy proceedings; provided, however, that this does not apply to the following claims:

(2)An order of grant of discharge does not affect any rights held by bankruptcy creditors against the bankrupt's guarantor or any other person who owes debts jointly with the bankrupt and any security provided by persons other than the bankrupt in the interest of bankruptcy creditors.

(3)If an order of grant of discharge has become final and binding, when there is an electronic schedule of bankruptcy creditors, a court clerk must, pursuant to the provisions of the Rules of the Supreme Court, record in the schedule to the effect that the order of grant of discharge has become final and.

(4)Notwithstanding the provisions of paragraph (1), the effect of discharge under the provisions of that paragraph with regard to a claim for a foreign tax subject to mutual assistance may be asserted only in relation to the mutual assistance under the provisions of Article 11, paragraph (1) of the Act on Special Provisions for the Enforcement of Tax Treaties, etc.

Article 254(1)When a judgment finding the bankrupt guilty for the crime set forth in Article 265 has become final and binding, the court may, upon the petition of a bankruptcy creditor or by its own authority, make an order of revocation of discharge. The same applies when an order of grant of discharge was made due to unlawful means used by the bankrupt, and a bankruptcy creditor has filed a petition for revocation of discharge within one year after the order of grant of discharge was made.

(2)When an order of revocation of discharge is made, a court clerk must, pursuant to the provisions of the Rules of the Supreme Court, prepare an electronic or magnetic record recording the main text of the order and record it in a file.

(3)The court must, when it has made an order of revocation of discharge, immediately serve the electronic judgment upon the bankrupt and the petitioner, and serve the electronic or magnetic record recorded in a file pursuant to the provisions of the preceding paragraph upon bankruptcy creditors. In such a case, with regard to service of the electronic judgment, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(4)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1) and an order of revocation of discharge by the court's own authority.

(5)When a judicial decision on the immediate appeal set forth in the preceding paragraph is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(6)When an order of revocation of discharge becomes final and binding, the order of grant of discharge ceases to be effective.

(7)When an order of revocation of discharge has become final and binding, if there is a person who has acquired a claim against the bankrupt arising from a cause that occurred after the order of grant of discharge was made and before the order of revocation of discharge has become final and binding, the person has the right to receive payment of their claim in preference to other creditors in new bankruptcy proceedings.

(8)The provisions of paragraph (3) of the preceding Article apply mutatis mutandis when an order of revocation of discharge becomes final and binding.

Article 255(1)The bankrupt's rights are restored in any of the following cases. The same applies when an order of restoration of rights referred to in paragraph (1) of the following Article becomes final and binding.

(2)The effect of restoration of rights under the provision of the preceding paragraph is as provided for by laws and regulations concerning personal qualifications.

(3)When an order of revocation of discharge or order of revocation of a rehabilitation plan becomes final and binding, the restoration of rights under the provisions of paragraph (1), item (i) or (iii) cease to be effective from that time onwards.

Article 256(1)When the bankrupt is discharged from all of their debts to bankruptcy creditors through payment or any other means, the bankruptcy court must, upon the petition of the bankrupt, make an order of restoration of rights.

(2)The court must, when the petition referred to in the preceding paragraph is filed, make a public notice to that effect.

(3)A bankruptcy creditor may, within three months from the day on which the public notice under the provisions of the preceding paragraph becomes effective, state their opinions on the petition set forth in paragraph (1) to the court.

(4)When a judicial decision on a petition referred to in paragraph (1) is made, a court clerk must, pursuant to the provisions of the Rules of the Supreme Court, prepare an electronic or magnetic record recording the main text of the order and record it in a file.

(5)The court must, when it has made a judicial decision on the petition referred to in paragraph (1), serve the electronic judgment upon the bankrupt, and serve the electronic or magnetic record recorded in a file pursuant to the provisions of the preceding paragraph upon bankruptcy creditors. In such a case, with regard to service of the electronic judgment, the provisions of the main clause of Article 10, paragraph (3) do not apply.

(6)An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (1).

(7)When a judicial decision on the immediate appeal referred to in the preceding paragraph is made, the electronic judgment must be served upon the parties concerned. In such a case, the provisions of the main clause of Article 10, paragraph (3) do not apply.