Payment Hearing and Payment Plans in New Brunswick Small Claims Court

If you have been sued in New Brunswick Small Claims Court and you know you owe the money — or at least some of it — you do not have to choose between paying a lump sum you cannot afford and ignoring the claim entirely. A payment hearing lets you ask the court to set up an instalment schedule that fits your financial situation.

How to Request a Payment Hearing

When you file your Form 2 Response, you admit the debt (in full or in part) and check the box requesting a payment hearing under Section 7(4) of the Regulation. The court then schedules a hearing where you and the claimant discuss a realistic payment plan in front of a hearing officer.

Bring documentation of your income, expenses, and assets. The hearing officer needs to see why a lump sum is not feasible and what monthly amount you can actually sustain. Bank statements, pay stubs, a list of regular expenses, and any other financial obligations all help make your case.

The Form 10 Payment Agreement

If you and the claimant reach an agreement — either at the payment hearing or through negotiation beforehand — you both sign a Form 10 (Payment Agreement). This document records the total amount owed, the instalment amounts, the payment schedule, and the due dates.

Filing Form 10 with the court clerk triggers an important protection: under Section 24(5), the claimant cannot request judgment against you as long as you are keeping up with the agreed payments. Miss a payment, though, and that protection evaporates — the claimant can immediately apply for judgment on the remaining balance.

What If You Cannot Agree on Terms?

If the payment hearing does not produce an agreement, do not assume the hearing officer will impose an instalment schedule. Ask the court clerk what next step applies to your case.

Payment Hearing vs. Dispute Hearing

A payment hearing is not the place to argue that you do not owe the money. If you believe the amount is wrong, or that you have a valid defence, file your Form 2 as a dispute (Section 1) instead of an admission. Requesting a payment hearing signals to the court that you accept the debt — you are only negotiating the schedule. If you want to contest liability on some of the amount, use the partial-admission route: admit what you accept, dispute the rest, and request a payment hearing on the admitted portion.

Why This Matters

A payment agreement keeps you out of enforcement proceedings. Without one, a judgment creditor can register a lien on your property and send the Sheriff to collect. With a Form 10 on file, the debt is managed and the claimant has a clear schedule. Both sides benefit from certainty.

Our New Brunswick small claims response guide covers the payment hearing process alongside every other response option, with worksheets to help you prepare your financial documentation and compare your options.

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