A tenant has failed to pay rent for several months and is no longer answering calls or messages. For many landlords, the first thought is:
“Is filing a lawsuit the only option?”
In fact, not every unpaid-rent claim has to begin with lengthy litigation.
When the claim concerns a clearly defined monetary debt, such as unpaid rent, management fees, or liquidated damages, a landlord may, under certain conditions, first apply to the court for a payment order. This provides a faster and less expensive way to demand payment from the tenant.
What exactly is a payment order? When can it be used? What happens if the tenant files an objection? This article explains the process.
What Does the Law Say?
Code of Civil Procedure, Article 508:
“1. Where a creditor’s claim is for the payment of a specified amount of money, other fungible goods, or negotiable instruments, the creditor may apply to the court for the issuance of a payment order in accordance with the procedure for payment order.
2. An application for and the processing of a payment order may, depending on the development of computers or other technological equipment, be conducted through the use of such equipment. The regulations governing such matters shall be prescribed by the Judicial Yuan.”
✨ Plain explanation: When someone owes a clearly defined amount of money, such as rent, a loan, payment for goods, or liquidated damages, the creditor may apply directly to the court for a payment order instead of immediately filing a civil lawsuit.
A payment order is part of a simplified debt-collection procedure. The court reviews the application and supporting documents in writing. In principle, the court does not first summon both parties to a hearing or conduct the same full examination of evidence and oral argument required in ordinary litigation. The process is therefore usually faster than a regular lawsuit.
⚖️ Legal Source: Code of Civil Procedure Article 508 – Law.moj.gov.tw
Code of Civil Procedure, Article 516:
“1. The debtor may, within the peremptory period of twenty days after service of the payment order, file an objection to all or part of the payment order with the court that issued the order, without stating any grounds.
2. The debtor may withdraw the objection before a settlement is reached in mediation or before the conclusion of the oral argument in the first instance. However, the debtor shall bear the costs of the mediation proceedings or litigation.”
✨ Plain explanation: Receiving a payment order does not mean that the matter has already been decided.
When the debtor believes that no debt exists, the amount is incorrect, or any part of the claim is disputed, the debtor may file an objection within 20 days after receiving the payment order. No explanation or supporting reason is required at that stage.
Once a lawful objection is filed, the payment order loses its effect within the scope of the objection, and the case generally proceeds through mediation or civil litigation.
⚖️ Legal Source: Code of Civil Procedure Article 516 – Law.moj.gov.tw
Code of Civil Procedure, Article 521:
“1. Where the debtor has failed to lawfully file an objection to the payment order within the statutory period, the payment order may constitute an enforceable title.
2. In the circumstances referred to in the preceding paragraph, the court that rendered the ruling shall issue a certificate of finality of the ruling.
3. Where the debtor brings an action for a declaratory judgment asserting that the claim stated in the payment order does not exist, the court may, upon the debtor’s application, permit the debtor to provide adequate and reliable security and stay compulsory enforcement.”
✨ Plain explanation: If the debtor does not lawfully file an objection within the 20-day period, the payment order may be used as an enforceable title.
The creditor may obtain a certificate of finality from the court and then apply for compulsory enforcement against the debtor’s property, such as bank deposits, salary, or other assets.
⚖️ Legal Source: Code of Civil Procedure Article 521 – Law.moj.gov.tw
Which Rental Disputes Are Suitable for a Payment Order?
The main feature of a payment order is that it applies to a claim for a clearly defined monetary debt.
Common examples include:
- 📌 Unpaid rent
- 📌 Unpaid management fees
- 📌 Agreed liquidated damages
- 📌 Repair costs in a fixed and established amount
- 📌 Other monetary claims that can be clearly calculated
However, a payment order may be less suitable when the case involves disputed facts that require investigation, such as whether a breach actually occurred, how much damage was caused, or whether the rental property had a water leak.
What Does a Landlord Need to Apply for a Payment Order?
A landlord will generally need to prepare:
- An application for a payment order
- The rental agreement
- A statement of unpaid rent
- Bank transfer records, payment-demand messages, LINE conversations, or other supporting evidence
- A court fee of NT$500 for each application
In principle, the application should be filed with the district court having jurisdiction over the debtor’s domicile.
The more complete the evidence is, the easier it will be for the court to understand the basis and amount of the claim. Complete documentation can also reduce the risk that the court will order the landlord to supplement the application or dismiss it for insufficient information.
For the complete official explanation and application process, refer to:
🔮 Official Source: Judicial Yuan – Payment Orders and Procedures
Is the Payment Order Still Effective If the Tenant Objects?
Many landlords assume that once the court issues a payment order, recovery of the unpaid rent is guaranteed.
That is not the case.
If the tenant lawfully files an objection within the statutory period, the payment order loses its effect within the scope of that objection. The landlord’s original application for a payment order will then be legally deemed an initiation of litigation or an application for mediation, and the case will proceed through mediation or civil litigation.
In other words, a payment order is not a court judgment deciding which party is right. It is a simplified procedure intended to demand payment quickly.
What If the Tenant Does Not Respond at All?
This is where a payment order offers its greatest advantage.
If the tenant receives the payment order and does not lawfully file an objection within the statutory 20-day period, the payment order may be used as an enforceable title. After obtaining the court’s certificate of finality, the landlord may apply for compulsory enforcement.
For example:
- 💰 Seizure of bank deposits
- 💰 Garnishment of salary
- 💰 Seizure of other enforceable assets
A payment order can therefore be an efficient option when the unpaid rent is clearly documented and the tenant has disappeared or completely stopped responding.
Two Common Practical Situations
Situation 1: The Tenant Disappears After Failing to Pay Three Months of Rent
The landlord has retained the complete rental agreement, payment-demand messages, and a detailed record of the unpaid rent.
The landlord may apply to the court for a payment order. If the tenant does not file an objection, the landlord may subsequently apply for compulsory enforcement in accordance with the law.
Situation 2: The Tenant Refuses to Pay Rent Because of a Water Leak
The tenant claims that the rental property had a water leak and therefore refuses to pay rent.
Because the parties have a substantive dispute over whether the rent remains payable, the tenant may file an objection. The case will then generally proceed to mediation or civil litigation, where the court will examine the facts and make a determination.
Never Ignore a Payment Order
Payment orders are not used only by landlords. Tenants and members of the general public may also receive payment orders issued by a court.
Even when the contents appear incorrect or the document seems suspicious, it should not simply be ignored.
The Judicial Yuan specifically reminds recipients to review court documents immediately. When the claim is disputed, an objection should be filed with the court within 20 days. If no objection is filed within the statutory period, the creditor may use the payment order to apply for compulsory enforcement against the debtor’s property.
🐬 Related Reading: Tenant Not Paying Rent in Taiwan?
🌊 Related Reading: Do Rental Disputes Always Need Court?
🌋 Related Reading: What Happens When a Rental Dispute Goes to Court?
🔥 Related Reading: What Is a Certified Mail Notice? When Should Landlords and Tenants Send One in Taiwan?
Conclusion
The main advantages of a payment order are its relatively simple procedure, low cost, and speed. A landlord does not need to begin every unpaid-rent claim with lengthy civil litigation. When the debt and amount are clearly established, a payment order can be an important tool for recovering unpaid rent.
However, a payment order is not a guaranteed solution. If the tenant files an objection, the case may still proceed to mediation or litigation. It may also be unsuitable where the parties already have complicated disputes concerning the existence or amount of the debt.
When a tenant fails to pay rent, the landlord should first organize the rental agreement, payment-demand records, and other supporting evidence. The landlord can then evaluate whether applying for a payment order is the most efficient way to protect the landlord’s rights.
