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  • Civil procedure
  • Demanding procedure
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Demanding procedure

Settlement demand, along with lawsuit and arbitration, is one of the crucial procedures for settlement of a civil dispute through a court, but it remains unfamiliar to most people. The following includes a comparison of its chief characteristics with those of other common lawsuit procedures.

Merits of settlement demand

1. The court issues a payment order based only on document review.
For settlement demand, the court issues a payment order based only on a review of the documents submitted by the creditor (or the plaintiff), without examining the parties to the dispute. Thus, the creditor does not have to appear in court, which saves time and effort.

2. A dispute can be settled promptly.
Settlement demand is a summary dispute settlement procedure based on the creditor’s application for the court’s payment order mainly concerning borrowings, price of goods, or rents. If the debtor does not raise an objection and thus the payment order is fixed, the creditor may have his/her receivables settled through forced execution and thereby settle the dispute promptly.

3. Expenses the creditor should pay to the court are not high.
When applying for the court’s payment order, the creditor pays fees equal to one tenth of those paid in an ordinary lawsuit, as well as delivery fees on six occasions per each party.

4. Upon being fixed, the court’s payment order has the same effect as a formal judgment and can be executed forcefully without a separate execution clause.