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Enforcement & Bankruptcy Law

What Is an Action to Set Aside an Objection?

2 min read

If a debtor objects within the statutory period to a payment order served on them, the enforcement proceeding is automatically suspended. One of the most common remedies available to the creditor in this situation is an action to set aside the objection.

What Purpose Does This Action Serve?

This action is filed by the creditor to resume an enforcement proceeding that has been suspended by the debtor's objection. The court examines whether the claim genuinely exists; if the ruling favours the creditor, the objection is set aside and the suspended proceeding continues from where it left off.

What Is the Filing Deadline?

The creditor must file the action to set aside the objection within one year of the objection being served on them. If the action is not filed within this period, the creditor can no longer pursue the claim through that particular enforcement proceeding, though the option remains to pursue the claim through a separate action before the general courts.

What Is the Difference Between Setting Aside and Removing an Objection?

An action to set aside an objection is heard before the general courts, where the parties may present all their evidence. Removing an objection, by contrast, is a faster procedure before the enforcement court, available where the creditor holds a specific type of document proving the debt (such as a signed instrument).

What Happens as a Result of the Case?

If the court sets aside the objection, the debtor may additionally be ordered to pay enforcement-denial compensation — an extra financial sanction for a debtor who unjustifiably objected to the debt. If the action is dismissed, the creditor may face a similar form of compensation.

Practical Tips

Note the one-year deadline in your calendar from the moment you learn of the debtor's objection; this period is preclusive and cannot be recovered. Gathering all documents evidencing your claim (contract, invoices, correspondence) before filing speeds up the process.

This article is provided for informational purposes only and does not constitute legal advice. Please contact our team regarding your specific situation.