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.
- 01. Merits of settlement demand
- 02. Procedure for payment order
- 03. Inability to deliver payment order and measures taken
- 04. Raising an objection to payment order
Raising an objection to payment order
The debtor may raise an objection to payment order within two weeks of receiving the attested copy of the court’s payment order.
Upon the debtor raising an objection, the payment order loses its effectiveness and the usual lawsuit procedure should be followed (i.e. a small claims lawsuit if the amount involved comes to 20 million won or less; a lawsuit decided by a single judge for an amount of 100 million won or less; a case decided by a panel of judges for an amount exceeding 100 million won). The debtor is given an opportunity to explain his/her position to the court as the defendant.
Once the payment order loses its effectiveness and the usual lawsuit procedure is started, the creditor cannot apply for forced execution against the debtor.