Payment Terms Hearing in Ontario Small Claims Court

When a Terms of Payment Hearing Gets Scheduled

A terms of payment hearing happens when you admit owing money in your Defence (Form 9A) and propose payment terms under Rule 9.03 — but the plaintiff disputes them. Within 20 days after being served with your Defence, the plaintiff must serve you with and file a Request to Clerk (Form 9B) for a Terms of Payment Hearing. The clerk then schedules a hearing before a referee or judge to decide what you can actually afford to pay.

If the plaintiff does not serve and file the request within those 20 days, your proposed payment terms are deemed accepted, and you must make payment as if the terms were a court order. No hearing is needed.

What You Need to Bring

For an individual defendant, the clerk sends a blank Financial Information Form (Form 20I) with the hearing notice. Complete it and serve it on the plaintiff before the hearing; do not file it with the court. Bring supporting documents for the information in your form:

• Recent pay stubs — at least three months of employment income
• Bank statements — chequing, savings, and any investment accounts
• Monthly expense records — rent or mortgage, utilities, groceries, insurance, transportation, childcare
• Debt obligations — credit card minimums, car payments, student loans, other court orders
• Tax returns — your most recent Notice of Assessment from the CRA

The more thorough your documentation, the more credible your proposed terms look. A vague claim that you cannot afford to pay without supporting records will not move the needle.

What Happens at the Hearing

The hearing itself is typically short — often 15 to 30 minutes. The referee or judge reviews your financial information, asks questions about your income and expenses, and hears from the plaintiff about the amounts owed and any concerns about your proposal.

Under Section 28 of the Courts of Justice Act, the court can order instalment payments based on what you can genuinely afford. The referee considers your financial means, income, and necessary expenses. They may order:

• Monthly instalment payments spread over a set period
• A lump-sum payment by a specific date if you have savings or expect incoming funds
• A combination — an immediate partial payment followed by instalments

The payment order is binding. If you default, unless the order says otherwise, the plaintiff may file an affidavit of default and the clerk will sign judgment for the unpaid balance; the plaintiff can then pursue enforcement.

Common Mistakes Defendants Make

Proposing an amount that is far below what your financial information shows you can afford — for example, $25 per month on a $15,000 judgment — may be difficult to support. The referee sets terms based on your financial means, income, and necessary expenses. Conversely, agreeing to more than you can sustain leads to missed payments and enforcement proceedings.

Be honest about what you can pay. If your circumstances change later (job loss, medical emergency), Rule 20.02 lets you ask the court to vary the times and amounts of payment. A motion filing fee of $127 applies.

What Comes After the Order

If you default on the payment order, the plaintiff may file an affidavit of default so the clerk can sign judgment for the unpaid balance. The plaintiff can then pursue enforcement through garnishment (Form 20E), seizure of personal property (Form 20C), or a judgment debtor examination (Form 20H).

If you stick to the payment schedule, no further court involvement is needed. Keep records of every payment — bank transfers with reference numbers, money order receipts — in case a dispute arises about whether you have been complying.

For a complete walkthrough of your response options as a defendant — from the 20-day deadline through the hearing and beyond — the Ontario Small Claims Defence Guide covers every step of the process.

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