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If you have been served with a statement of claim and you cannot afford to pay the debt in one lump sum, you can ask the other party if they will accept smaller payments in instalments. If they do not agree, you can make an application to the court to pay by instalments. If you wish to do this, follow the steps in the guide on this page.
You will need two forms:
You can get copies of the forms from:
You can also complete and file this form online using the NSW Online Registry.
You will need the following information to fill out the forms:
You should carefully review your income and expenses when deciding how much to offer to pay.
The registrar will look closely at all your financial information to see whether you can realistically afford to pay the offered instalments. The registrar will also consider whether you can afford to pay more than you have offered, and whether your payments will be high enough to pay off the debt and interest within a reasonable time.
You can get help working out what instalments you can afford from a financial counsellor. To find a free financial counsellor, go to the Financial Counsellors' Association of NSW (FCAN) website.
You can fill out the form in neat handwriting in blue or black pen. You can also fill out the form on your computer screen. For instructions on how to do this, go to the 'Guide to completing approved forms' on the UCPR website.
When you have finished filling out the form you need to sign the affidavit section of the Notice of Motion in front of an approved witness. Approved witnesses include a:
Instructions: Instructions for filling out an acknowledgement of liquidated claim. Sample: Sample acknowledgement of liquidated claim.
Instructions: Instructions for filling out a notice of motion to pay by instalments – individual Sample: Sample notice of motion to pay by instalments – individual
You must take or send the form to the Local Court. There is no filing fee.
A registrar will consider your application to pay by instalments and decide whether to accept or refuse it. The court will send you a letter notifying you of the decision.
You have to file the forms at the same Local Court where the statement of claim was filed.
If your instalment application is accepted, the court will notify the other party. If the other party disagrees with the court's decision they have 14 days to file an objection at the court.
If the other party files an objection, the court will hold a brief hearing about your instalment application. You will be notified of the date of this hearing.
If the other party does not file an objection, the instalment order made by the registrar will be in force. As long as you pay the instalments on time, the other party cannot take any other enforcement action against you.
If the registrar refuses your instalment application, you have 14 days to file an objection to the refusal. If you file an objection the court will hold a brief hearing about your instalment application. You will be notified of the date of this hearing.
Instructions: Instructions for filling out a notice of motion – objection to order refusing instalment application. Sample: Sample notice of motion – objection to order refusing instalment application.