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With the prolonged economic depression since 1991, Japan has recognized that securing the effectiveness of handling bankruptcy is indispensible to stabilize the country’s financial system, and further, revive its economy. The Civil Reorganization Act has been enforced since 2000. Although this law was initially established as procedures for small and medium-sized companies to reconstruct their businesses in a simple and prompt manner, it has also become available for individuals and large-sized companies by positioning itself as reconstruction-oriented basic procedures. On the other hand, the Corporate Reorganization Act, which was enacted under the strong influence of the USA in 1952, stipulates specialized procedures for the reconstruction of large-sized companies. After Japan recognized the limitation of civil reorganization procedures in reconstructing large-sized companies, the Corporate Reorganization Act was revised and enforced in April, 2002 to rehabilitate the Japanize economy. Coupled with these legal procedures, private reorganization-based alternative dispute resolution is also attracting public attention in handling bankruptcy. In particular, rule-based private reorganization, which refers to private reorganization-based business rehabilitation that proceeds through more relaxed structures instead of court procedures, has recently emerged as a more promising solution. At present, these systems are actively used as business rehabilitation tools after undergoing legal modifications.