Introduction

The presence of a guarantor is a crucial element in permanent residence applications. However, applicants may feel anxious if their guarantor has debts. This article explains how to handle such situations and the impact on the screening process, incorporating the latest information.

Role and Requirements of a Guarantor

The role of a guarantor in permanent residence applications was modified by the system reform in June 2022. Currently, the main roles of a guarantor are:

• Supporting the applicant in complying with Japanese laws
• Assisting the applicant in fulfilling public duties properly

The primary requirements for becoming a guarantor are:

• Holding Japanese nationality or permanent residence status
• Being an adult
• Having a stable financial foundation

Impact of a Guarantor’s Debt

The impact of a guarantor’s debt varies depending on the nature of the debt and the repayment status.

Good Debt vs. Bad Debt

There are “good debts” and “bad debts”:

Examples of Good Debts:

• Mortgage loans
• Car loans
• Student loans (scholarships)

Examples of Bad Debts:

• Overdue debts
• Multiple debts

If a guarantor has good debts with reliable monthly repayments and a positive cash flow, it may not significantly affect their eligibility as a guarantor.

Impact on the Screening Process

The impact of a guarantor’s debt on the screening process depends on several factors:

• Type and amount of debt
• Repayment status
• Overall financial situation

For example, having a mortgage loan with timely repayments and stable income may not pose a problem for the guarantor’s eligibility. However, multiple debts or overdue payments could raise questions about their suitability as a guarantor.

Can a Guarantor Be Changed?

It is possible to change a guarantor. Applicants may consider changing their guarantor in the following situations:

• If the current guarantor has financial issues
• If a more suitable guarantor is found
• If the current guarantor can no longer fulfill their role

To change a guarantor, a new affidavit of guarantee including the new guarantor’s information must be submitted.

What to Do If a Guarantor Cannot Be Found

If a guarantor cannot be found, the following options are available:

• Submit a document explaining the reason for not having a guarantor
• Use a guarantor proxy service (carefully weighing the pros and cons)

Conclusion

The impact of a guarantor’s debt on permanent residence applications varies based on the nature and repayment status of the debt. If the debt is of a good type and repayments are timely, it may not be a significant issue. However, if there are multiple debts or overdue payments, changing the guarantor might be necessary. If you are unsure about selecting or changing a guarantor, it is advisable to consult a professional. Permanent residence applications are important procedures that require proper preparation and response.