Small Claims Court

Can you pay a Small Claims judgment in instalments?

Last updated October 7, 2026.

Yes. Ontario's Small Claims Court can order a judgment paid in instalments, and a debtor can ask in the Defence, at trial, at an examination hearing, by motion after judgment, or through a consolidation order. While a payment order is in force and you keep paying, the creditor cannot garnish your wages or seize your belongings. If you miss a payment, the order can end 15 days after the creditor serves a notice of default.

Instalments are not automatic: someone has to ask. Whether you owe the money or are owed it, our page on help with Small Claims Court cases explains how Carson Frankum, a licensed paralegal in Hamilton, works on Small Claims matters from the claim through to collection.

How do you get a payment schedule, step by step?

The rules come from section 28 of the Courts of Justice Act, which lets the Small Claims Court order "the times and the proportions" in which money it awards is paid, and from Rules 9.03 and 20 of the Rules of the Small Claims Court. Here is the usual order of events, from the earliest chance to the latest.

Before judgment: propose terms in your Defence. If you admit you owe all or part of the claim but need time, you can admit it in your Defence and propose terms of payment (r. 9.03(1)). The Defence is due within 20 days of being served with the claim; our guide to what to do after being served with a Plaintiff's Claim walks through that deadline.
The plaintiff accepts or disputes the proposal. If the plaintiff does not dispute it within 20 days after being served with your Defence, you must pay as proposed, as if it were a court order (r. 9.03(2) and (3)). If the plaintiff disputes it, they file a request for a terms of payment hearing, and a referee or other person appointed by the court decides the terms (r. 9.03(3) and (5)). If you are an individual, the clerk sends you a Financial Information Form (Form 20I), which you complete and serve on the plaintiff before the hearing but do not file with the court (r. 9.03(4.2) and (4.3)).
At trial: ask the judge. If you lose at trial, you can ask the judge to set instalments as part of the judgment under section 28. Bring proof of your income and expenses.
After judgment: talk to the creditor first. The province's guide to procedures after judgment tells debtors to contact the creditor right away and propose a schedule they can keep. A written agreement costs nothing. Keep proof of every payment.
After judgment: bring a motion. If you cannot agree, you can file a Notice of Motion and Supporting Affidavit (Form 15A). Under rule 20.02(1), the court may stay enforcement "on such terms as are just", and it may vary the times and amounts of payment if your circumstances have changed. The court fee to file a motion is $127.
At an examination hearing. If the creditor summons you to an examination hearing about your finances, the judge may make an order as to payment after the examination, or on your filed consent (r. 20.10(7)).
Two or more judgments: ask for a consolidation order. A debtor with two or more unpaid Small Claims orders can bring a motion to combine them into one payment schedule (r. 20.09). We explain how that works below.

Once a payment order is made, the protection is real. While an order for periodic payment is in force, a creditor named in it cannot take or continue any enforcement step except issuing a writ of seizure and sale of land and filing it with the sheriff (r. 20.02(2)). The same limit applies to an order as to payment made at an examination (r. 20.10(8)) and to a consolidation order (r. 20.09(9)).

Ways to pay an Ontario Small Claims judgment over time
Route	When	Rule	Court fee	What ends it
Terms of payment proposed in the Defence	Before judgment, within the 20 days to defend	r. 9.03	Part of the $77 Defence fee	Missed payment, then a notice of default and 15 days
Instalments set at trial	When judgment is given	Courts of Justice Act s. 28	None extra	Missed payment, then a notice of default and 15 days
Agreement with the creditor	Any time	No rule; a private agreement	None	Whatever the agreement says
Motion to stay enforcement or vary payments	After judgment, when circumstances change	r. 20.02(1)	$127 motion fee	Missed payment, then a notice of default and 15 days
Order as to payment at an examination	At or after an examination hearing	r. 20.10(7)	The creditor pays $68 for the notice of examination	Missed payment, then a notice of default and 15 days
Consolidation order	Two or more unpaid orders	r. 20.09	$127 for preparing and filing the order	21 days in default, or a new judgment for a later debt

Fees are from O. Reg. 332/16 and the province's Small Claims Court fees page. If you cannot afford them, you can ask for a fee waiver.

What happens if you miss an instalment?

The creditor can serve you with a Notice of Default of Payment (Form 20L) and file it with an Affidavit of Default of Payment (Form 20M) (r. 20.02(3)). The payment order then ends 15 days after you were served, unless a consent (Form 13B) in which the creditor waives the default is filed within those 15 days (r. 20.02(4)). Once the order ends, the creditor is free to use any other enforcement method, including garnishment of your wages or bank account.

Those 15 days are your window. If you missed a payment because of a one-time problem, contact the creditor at once, pay what you can, and ask them to sign the consent waiving the default.

Terms proposed in a Defence work slightly differently. After a notice of default and 15 days, the clerk can sign judgment for the unpaid balance of the amount you admitted (r. 9.03(2)). If a referee set the terms, the clerk signs judgment for the unpaid balance once the plaintiff files an affidavit about the default, unless the order says otherwise (r. 9.03(7)).

How does a consolidation order work?

A consolidation order is built for people facing more than one judgment. Instead of several creditors each garnishing or seizing, you make one set of payments into court, and the clerk shares them equally among the creditors named in the order (r. 20.09(12)). The clerk must pay out the money at least once every six months (r. 20.09(13)).

To ask for one, you file a Form 15A motion and affidavit that lists each creditor's name and address, the amount you owe each one, your income from all sources, and your current financial obligations (r. 20.09(2)). The province's guide says to apply at the Small Claims Court where you live. You must serve the motion on every creditor at least seven days before the hearing (r. 20.09(3)), and each creditor can make submissions about the amount and timing (r. 20.09(6)).

There is a ceiling. The total you pay under a consolidation order cannot exceed the share of your wages that could be garnished under section 7 of the Wages Act (r. 20.09(5)). For an ordinary debt, that share is 20 percent, because 80 percent of a person's wages are exempt (Wages Act s. 7(2)). "Wages" here means pay after the deductions an employer must make by law, such as income tax (s. 7(1)).

The order is fragile. It ends immediately if you are in default for 21 days, or if a creditor gets a judgment for a debt you took on after the order was made (r. 20.09(8) and (10)). After it ends, no new consolidation order can be made for one year (r. 20.09(11)). A creditor with a new judgment for a debt that existed before the order can join it (r. 20.09(7)).

What changes the answer?

Whether you are an individual or a business. Only a debtor who is an individual must complete the Financial Information Form (r. 9.03(4.2) and r. 20.10(4.1)), and the Wages Act protects a person's wages. If the debtor is a corporation, partnership or sole proprietorship, an officer, director, partner or the owner can be examined on its behalf (r. 20.10(5)).
A change in your circumstances. Rule 20.02(1)(b) lets the court vary the times and amounts of payment only if it is satisfied your circumstances have changed. Bring evidence of what changed: a layoff letter, medical notes, a new budget.
A writ against land. Even a payment order does not stop a creditor from issuing a writ of seizure and sale of land and filing it with the sheriff (r. 20.02(2)). If you own a home, the ministry's guide notes the writ encumbers it, which can make a sale or mortgage difficult, even while you pay. Our page on how long a Small Claims judgment lasts explains how long those writs stay in force.
Interest. Postjudgment interest runs on money owing under an order from the date of the order (Courts of Justice Act s. 129(1)). Where an order provides for periodic payments, each payment in default bears interest only from the date of default (s. 129(2)). Our page on interest on debts and judgments shows how the rate is set.
How the judgment was made. If the judgment was signed in default because no Defence was filed, you may have a separate option to ask the court to set it aside. See what a default judgment is and when it can be set aside before you agree to pay a judgment you never had a chance to defend.
Support orders. The 20 percent figure is for ordinary debts. When the debt is a support or maintenance order, 50 percent of wages can be garnished (Wages Act s. 7(3)).

A worked example

For example, imagine a Hamilton warehouse worker named Dana who lost a Small Claims case over an unpaid car repair bill. The judgment, with costs, comes to $7,200. Dana's net pay is $1,900 every two weeks, and rent and a car loan take most of it. She did not ask for instalments at trial.

A month after judgment, the creditor garnishes part of Dana's chequing account. Dana offers $300 every two weeks, and the creditor says no. Dana files a Form 15A motion asking the court to stay enforcement and set payments of $250 every two weeks, with a sworn budget, her pay stubs and proof that her hours were cut. The motion fee is $127.

The judge sets payments of $300 every two weeks. From then on, the creditor cannot garnish her pay or bank account while she keeps up. In month five, Dana misses a payment after a car repair of her own. The creditor serves a notice of default. Dana calls within the week, pays the missed amount, and the creditor signs a consent waiving the default, which is filed before the 15 days run out. The order stays in place.

This is a made-up illustration, not a real case. A judge might set different terms, or none.

Common mistakes people make

Paying nothing while "waiting for an answer". Until there is a payment order or a signed agreement, the creditor can garnish and seize. Get any arrangement in writing.
Letting the 15 days run out. After a notice of default, the order ends on day 15 unless a consent waiving the default is filed (r. 20.02(4)). A phone call is not enough; the consent has to be filed.
Offering a schedule you cannot keep. A consolidation order ends after 21 days of default, and you then wait a year for another (r. 20.09(10) and (11)). Propose a figure your budget can carry.
Skipping the examination hearing. The hearing is often where a payment order is made. Missing it can lead to a contempt hearing; see our page on what happens at a Small Claims examination hearing.
Not asking for a lower garnishment. If losing 20 percent of your wages causes real hardship, a judge can increase the exempt share on your motion (Wages Act s. 7(5)). Our article on how wage garnishment works after a Small Claims judgment explains the creditor's side of that process.
Forgetting to close the file. When the debt is paid, make sure the creditor serves a notice ending any garnishment, or file a Request for Clerk's Order on Consent (Form 11.2A) or a motion confirming full payment (r. 20.12).

What to do this week

Find the judgment and note the total, the costs and the date it was made.
Write a monthly budget with your net pay, rent, debts and essential bills, and gather pay stubs and bank statements.
Contact the creditor or their representative in writing, propose a realistic schedule and ask for written agreement.
If they refuse, prepare a Form 15A motion asking the court to stay enforcement and set payments, and file it with the $127 fee (or a fee waiver request).
If you have two or more Small Claims judgments, list each creditor, address and balance, and consider a consolidation motion instead.
Keep proof of every payment you make, and calendar each due date so a missed payment never surprises you.

Frequently asked questions

Can the creditor refuse my instalment offer?

Yes. A creditor does not have to accept a private payment plan. If they refuse, you can ask the court for an order setting payment terms.

Does an instalment order stop a bank garnishment that has already started?

While an order for periodic payment is in force, a creditor named in it cannot take or continue enforcement steps, except a writ against land (r. 20.02(2)). If money was already paid into court before the order, ask the court in your motion what happens to it, because the clerk holds the first garnishment payment for 30 days before paying it out.

How much of my pay can be garnished if I have no payment order?

For an ordinary Small Claims debt, up to 20 percent of your net wages, because 80 percent are exempt under the Wages Act. A judge can raise or lower that share on a motion. Our page on property that cannot be seized to pay a judgment covers the other protections.

Can a paralegal represent me on a payment motion?

Yes. Motions, examination hearings and consolidation orders all take place in the Small Claims Court, which is within a licensed paralegal's scope of practice under Law Society of Ontario By-Law 4. An appeal of a final Small Claims judgment over the appeal threshold goes to the Divisional Court, where you would need a lawyer.

Does interest keep running while I pay?

Postjudgment interest generally runs on the unpaid balance from the date of the order. Under a periodic payment order, a missed payment bears interest from the date it went into default (Courts of Justice Act s. 129(2)).

What do I file once the judgment is fully paid?

If everyone agrees, a party can file a Request for Clerk's Order on Consent (Form 11.2A) saying the order has been paid in full. If the creditor will not sign, the debtor can bring a motion for an order confirming full payment (r. 20.12).

I live in Hamilton. Where are these motions heard?

Hamilton's Small Claims Court sits at the John Sopinka Courthouse, and the province's guide says a consolidation motion is brought where you live. See our page on Small Claims Court in Hamilton for the local office.

Sources

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This page gives general information about Ontario law, not legal advice for your situation. Cheddar Paralegal PC is a paralegal firm licensed by the Law Society of Ontario; licensed paralegals can help only with matters the Law Society allows paralegals to handle.