Court Instalment Orders in the Debt Recovery Process: How long is too long?

The court can make an order for the payment of a judgment by instalments, payable in such amounts and at such times as specified. If an order is made, it will stay enforcement of a judgment.

What will the Court weigh up?

Case law shows a number of considerations that the court will look as to when an instalment order ought not to be made. These include:

1. where the judgment debtor's financial means are enough to enable the judgment debt to be paid immediately;
2. if it is obvious that the judgment debtor would not be able to comply with the instalment order;
3. if the time for payment is unreasonable;
4. if it would not result in a net reduction of the judgment debt because of the amount of the interest that continues to run on the judgment debt.