Pay in Installments
First, you can try talking to the creditor to see if he or she is willing to work out a payment plan with you. Remind the creditor that you want to pay but that you just do not have the money to pay it all at once. The creditor may decide he or she would rather have some money a little at a time than nothing at all.
If you work something out, make sure all the details are in writing. The agreement should include due dates, grace periods (if any), if and how interest will accrue, where you should send the payments, what form of payment will be accepted, and who you should make the payments to. Make sure you keep detailed records and proof of your payments.
If the other side does not agree to a payment plan, you can try asking the court for one.
To ask the court to let you pay in installments:
- Fill out and file a Request to Make Payments (Form SC-220). Also fill out a Financial Statement
(Form EJ-165 ). - The court clerk will mail a copy of the request and financial statement to the creditor, along with a blank Response to Request to Make Payments (Form SC-221).
- The creditor has 10 days to tell the court that:
- He or she will accept the proposed payment schedule;
- He or she will accept payments in a different amount; OR
- He or she does NOT want to accept installment payments.
- If the creditor does not respond within 10 days, the court will assume that he or she accepted your proposed payment schedule and will grant your request to pay in installments.
- If the creditor does not accept your proposed payment schedule, the court will probably hold a hearing to discuss your request and make a decision.
Note: This option affects the interest because it may stop all interest from accumulating until the entire judgment is paid off. So if you have questions about how a payment plan can affect you, talk to a lawyer or the small claims advisor. Click for help finding a lawyer.