Re: Small Claims court allowed monthly payments?
Posted by:
been_there_done_that
()
Date: July 06, 2015 11:12PM
Small claims judges cannot order a payment arrangement. They enter a money judgment for the amount owed.
If you get sued, agree to mediate if the other party is willing to as well. You can sign a mediated agreement that includes a payment plan. This can be done before your small claims court date arrives.
If at all possible, avoid a judgment being entered against you. Have you tried talking to the other party and asking him/her to accept payments? How long will it take you to pay the full amount? If you get sued in small claims court, you can transfer the case to the General District Court and slow the process down for about three to four more months. That may be all the time you need to get the debt paid.
If the other party won't agree to anything and a judgment is entered against you, still keep paying the other party as much as you can as fast as you can. However, don't let the other party know where you bank so that they can't garnish the account. If they already know, don't keep money in the account until the debt is paid. If they know where you work, you are basically sunk since a wage garnishment is the best way to get the judgment paid from the creditor's point of view.