Michigan Small Claims Installment Payments: How to Request a Payment Plan

When You Owe the Money But Can't Pay It All at Once

Not every small claims case is about whether you owe money — sometimes it's about whether you can afford to pay it all right now. If a judgment has been entered against you in Michigan small claims court and a lump-sum payment isn't realistic, Form MC 15 lets you ask the court for a structured payment plan.

This isn't a loophole or a way to avoid paying. It's a court-sanctioned mechanism that converts an unmanageable one-time obligation into predictable installments. If granted, an MC 15a order can stay periodic wage garnishment after it is served on the employer.

How Form MC 15 Works

SCAO Form MC 15 is titled "Motion and Affidavit for Installment Payments / To Amend Order for Installment Payments." You can file it at any point after a judgment is entered against you.

The form requires detailed financial disclosures:

Income information — your average monthly income, its source (employment, self-employment, disability, retirement), and whether it's regular or variable.

Monthly expenses — rent or mortgage, utilities, food, transportation, medical costs, child support or alimony, and existing court-ordered payments.

Asset disclosure — bank account balances, vehicle values, real property interests, and other significant assets.

Proposed payment amount — the specific dollar figure you're offering to pay each month (or biweekly), along with the frequency and start date.

The affidavit portion must be sworn before a notary public or deputy court clerk. A casual letter to the court won't satisfy the requirement. There's a $20 filing fee, though Form MC 20 can waive it if you qualify based on income or public assistance status.

What Happens After You File

The court generally grants the request without a hearing unless the judgment creditor files timely objections under MCR 3.104. If there are objections, the court may decide on the papers or schedule a hearing.

The judge reviews your finances and either approves your proposed plan, modifies the amounts, or denies the motion. If approved, the court issues Form MC 15a (Order for Installment Payments), which becomes a binding court order.

The Garnishment Protection

An MC 15a order affects periodic wage garnishment after the order is served on the employer. It does not stay bank-account garnishments, tax refunds, or other property enforcement.

If you miss a payment, the order does not automatically disappear. The judgment creditor may ask the court to set aside the installment order and pursue garnishment.

Bank account garnishments (non-periodic, Form MC 13), tax refunds, and other property are not stayed by the installment order.

Proposing a Realistic Amount

The number you propose matters. Courts are more likely to approve an amount that's consistent with your disclosed income and expenses. Offering $25 per month on a $6,000 judgment when your budget shows $500 in monthly discretionary income won't be convincing. Conversely, a payment that would leave you unable to cover basic necessities isn't sustainable and the court knows it.

A common approach: calculate your monthly income minus essential expenses, then offer 15-25% of the remaining discretionary amount. Show the math clearly on the form. If you have seasonal income fluctuations, note that and propose a schedule that accounts for lower-earning months.

Timing Considerations

You can file Form MC 15 after judgment, before or after enforcement begins. Filing the motion does not itself stop collection. If the court grants an order, serve it on the employer to affect periodic wage garnishment; an existing garnishment is not replaced until the order takes effect.

The Michigan Small Claims Response Guide includes a detailed worksheet for calculating a defensible payment proposal and a checklist of the financial documents you'll need for the MC 15 affidavit.

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