Sometimes as a result of sending a Final Notice or following letters of demand it becomes clear that there is no real dispute. If an agreement can be reached to repay by installments there is now an option for the parties to enter into an Enforceable Payment Agreement (EPA) (Form P2).

The advantage to the creditor is that if the debtor falls behind in making two payments a claim can then be issued for the outstanding balance, but the debtor will not be allowed to file a defence to the claim. Instead the creditor will be able to obtain a judgment straight away which can then be enforced like any other judgment. [See Uniform Civil Rules rule 62.2(4)]

The advantage to the debtor is that if they abide by the agreement they do not get an adverse credit rating [Uniform Civil Rules rule 62.2(3)] and they do not have to pay the legal costs associated with a claim being issued through the Magistrate's Court.