How to apply for an instalment order in the County Court of Victoria

In this article

This resource is for people in Victoria who want to apply for an instalment order after a judgement has been made against them in the County Court of Victoria.

This resource covers:

  • What is an instalment order?
  • What should I do before applying for an instalment order?
  • How do I apply for an instalment order?
  • What happens if the court makes an instalment order?

Throughout the resource there are links to documents and helpful additional resources which will assist you in taking the next steps in your matter. 

You may apply for an instalment order in the County Court if you have been ordered to pay a sum of money to the other party in your legal matter, and you cannot afford to pay the full amount. An instalment order means you can pay off a debt and penalty interest by instalments, rather than paying a lump sum.

Debt: the amount the Court has ordered you to pay to the other party of your legal matter

Penalty Interest: an extra amount that is calculated as a percentage of the debt, which is paid on top of the debt.

If your application is granted, the Court will make an instalment order. This order will state the amount of each instalment that you must pay to the other party, and the dates that you must pay each instalment.

An instalment order will “stay” (pause) the order against you. However, any penalty interest added to the order will keep adding up while you are making payments on an instalment order. This might mean that you pay more over time, compared to paying in a lump sum.

You should also be aware that it is a serious problem if you “default” (not pay) on the instalments, if you can afford to pay them. This is because the Court can order that you be imprisoned for up to 40 days if you can afford to pay instalments but persistently and wilfully default on payments without a reasonable excuse.

If your instalment order application is refused, you are not allowed to make another application for three months. 

The person or company who you have been ordered to pay is called the “judgement creditor”. You should contact the judgement creditor to try and agree on a payment plan for the debt, before you apply to the Court for an instalment order. 

If you and the judgement creditor can’t reach an agreement and you are considering applying for an instalment order, think about the following questions:

  • how much can you afford to pay per instalment, making sure that you take into account interest accruing (being added) on the debt?
  • will you be able to keep up with and follow the order you are proposing?
  • what is a reasonable timeframe within which the creditor could expect to receive full payment?

The purpose of an instalment order is to make sure the judgement creditor can recover the debt you owe them. It is likely that the Court will not grant your application if you ask for an instalment order that goes for too long or if the Court thinks that you will not be able to follow it. This is because these things will make it unlikely that the debt will be repaid.

You should speak to a financial counsellor for free and confidential help before you consider putting a payment plan to the judgement creditor or applying for an instalment order. 

The National Debt Helpline can help you find a financial counsellor.

The process set out below is contained in Part II of the Judgement Debt Recovery Act 1984 (Vic) and Order 61 of the County Court Civil Procedure Rules 2018 (Vic).

You must comply with the terms of an instalment order as you would any other judgement of the Court. 

If you do not pay the instalments as required there may be significant consequences. These consequences can include the stay (pause) on the order being lifted and as noted above, imprisonment.

Justice Connect operates a service which assists people representing themselves in the County Court of Victoria. If you would like to apply for assistance from the Service, please complete our application form

If you are struggling with debt, you can contact the National Debt Helpline for free and confidential financial counselling. The National Debt Helpline can be contacted on 1800 007 007 or via their website.

This resource was last updated on 14 June 2023. This is legal information only and does not constitute legal advice. You should always contact a lawyer for advice specific to your situation. Please view our disclaimer for more information.

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