What measures are taken when applying for legal entity rehabilitation procedures?

When the application for the commencement of legal entity rehabilitation procedures is received, the court first orders the prepayment of expenses necessary for the rehabilitation procedure and conducts an interrogation of the debtor's representative.

Usually, before the decision to commence the legal entity rehabilitation procedure, the court issues a property preservation disposition to prevent the debtor from operating the business in a reckless manner or the risk of fleeing or hiding property.

This disposition includes orders to the debtor such as prohibition of repayment, prohibition of disposal of property exceeding a certain amount, prohibition of borrowing money, and prohibition of hiring executives and employees.

In addition, the court may suspend individual compulsory execution on the debtor's property or issue a comprehensive prohibition order prohibiting future compulsory execution against all rehabilitation creditors and security holders.

Meanwhile, the application for commencement of legal entity rehabilitation procedures can be freely withdrawn only until the decision to commence is made, and after the preservation disposition, suspension order, or comprehensive prohibition order has been issued, withdrawal is possible only with court permission.

Therefore, it is good to consult with a legal entity rehabilitation attorney who has handled many legal entity rehabilitation cases for detailed matters.

The legal entity rehabilitation attorney will quickly prepare countermeasures suited to each individual situation.