Area of Law: Small Claims Court
Answer # 572
Changing the payment scheduleRegion: Ontario Answer # 572
If you were sued and lost, you were probably ordered to pay the other person an amount of money. This person is called a creditor, and you are called a debtor. If you are currently paying off a debt to a creditor and something happens that prevents you from making your payments, such as becoming ill or you losing your job, you may be able to have your payment schedule altered.
If you cannot make your payments, do not just ignore paying off the debt. First, you may want to explain your situation to the creditor and ask to change the payment plan. If the creditor agrees, ask that the new plan be put in writing so that you can both sign it. A signed agreement is evidence that the creditor agreed to the new payment plan.
Motion and Affidavit
If the creditor will not change the payment plan, you can ask a judge to do so. To have a judge revise your payment plan, you will need to make a motion at court. In order to do this, you will need to complete a Notice of Motion and Supporting Affidavit form, and file it with the court. The court will provide you with a hearing date. At the hearing, you will need to present your case and explain what has changed that prevents you from making the payments.
If you are making payments through a garnishment order, and you wish to change the payment amount or frequency, you will need to complete and file a Notice of Garnishment Hearing form. You will then need to appear at the garnishment hearing and present your case. If you are requesting that the garnishment order be terminated, however, you will need to complete a Notice of Termination of Garnishment.
All forms may be obtained at the Small Claims Court office or online from the Ministry of the Attorney General, Rules of the Small Claims Court Forms.
If you are unsure how to change your payment plan, the staff at the Small Claims Court may provide you with additional information.
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