A creditor should send a Notice of Intention to Proceed to a debtor, informing the debtor of their right to visit a debt counsellor and apply for debt review within 10 days of receiving the notice, and encouraging the debtor to pay the overdue amounts or dispute the debt, before legal proceedings are initiated. If the creditor fails to give notice, or gives notice that does not comply with the legal requirements, the claim may be dismissed by the court when legal action is taken. In the case of schools, this notice must also inform parents of their right to apply for exemption, and it enables a school to initiate legal proceedings within three months.
