Procedure for payment order

Settlement demand is a convenient system that allows the creditor to settle a civil dispute promptly without having to appear in court, but if the debtor raises an objection to the court’s payment order, it should follow an ordinary lawsuit procedure.

If it is likely that the debtor will raise an objection and that it will follow an ordinary lawsuit procedure, it may be more desirable for the creditor to apply for the court’s arbitration or to file a lawsuit in the first place.

However, considering that many disputes can be settled amicably through dialogue and compromise, following an arbitration procedure appears to be an advisable course of action.

Settlement demand can be used only for a complaint made to receive payment of cash, cash equivalent or securities when overdue, but not for a complaint concerning the transfer of ownership of a building or land.