Trial Court Rules
Uniform Small Claims Rules

Trial Court Rules  Uniform Small Claims Rule 7B: Conducting the payment hearing

Adopted Date: 12/19/2024
Effective Date: 02/03/2025
Updates: Adopted December 19, 2024, effective February 3, 2025

Table of Contents

(a) Payment hearing

(1) Generally

The court shall conduct a payment hearing before issuing any payment order, including circumstances where the parties present an Agreement for Proposed Payment Order. At the payment hearing, the plaintiff shall have the burden of proof, and the court shall make specific written findings of its determination as to the defendant’s ability to pay. Additionally, the plaintiff must prove that the defendant has the ability to pay the judgment without relying on exempt assets or sources of income. Such review shall further include a consideration of the defendant’s ongoing expenses when determining an ability to pay. The court shall require the defendant to complete a Statement of Finances and Income form, promulgated by the court and signed under the penalties of perjury. The statement shall be kept separate from other papers in the case and shall not be available for public inspection, but shall be available to the court, to attorneys whose appearances are entered in the case and to the parties to the case.

Upon a finding that the defendant has an ability to pay without relying on exempt assets or sources of income, the court shall, except where justice will not be served, order payment to the plaintiff of the amount of judgment and costs, as the case may be, on or by a date stated or in specified installments. The court’s decision shall be recorded on a Payment Order form and the court shall inform the parties of its decision.

Where parties bring to the court’s attention that they intend to agree to a payment arrangement without involvement of the court, the court shall inform the parties that any such agreement is not a court order and will not be enforced by the court.

(2) Hearing on agreement for proposed payment order

In addition to determining defendant’s ability to pay, where parties have agreed to a proposed payment order the court must determine that defendant has entered into the terms of the agreement voluntarily, and that the parties understand the terms of the proposed order.

If, after hearing, the court determines that the defendant is unable to pay as agreed but finds the defendant able to pay some amount less than the proposed agreed payment amount, the court may order the defendant to pay that lesser amount, so long as such payments do not include payments from exempt income or assets. The court’s decision shall be recorded on a Payment Order form and the court shall inform the parties of its decision.

(3) Defendant has no ability to pay

If, after payment hearing, the court finds that the defendant has no ability to make payments on the judgment, or cannot do so without relying on exempt sources, the court shall not enter a payment order, and the parties shall be notified.

(b) Failure of defendant to appear at hearing

If the defendant fails to appear at the payment hearing and it appears that the defendant received the notice of judgment and notice of payment hearing, and the plaintiff appears and states under oath, either orally or in writing under the penalties of perjury that the judgment has not been satisfied, prior to the issuance of any capias and upon written request or motion, the court shall issue a Notice informing the defendant that failure to appear for a further payment review hearing can result in the issuance of a capias. The Notice will be sent to the plaintiff/judgement creditor, who must arrange for service by an officer duly qualified to serve it. The court may provide for any other means of service in individual cases as is deemed appropriate.

(c) Payment review based on defendant’s changed circumstances

Whenever a payment order is issued, the court shall advise the parties that any party may ask the court to revise or vacate the order at any time based on a change to the defendant’s financial circumstances.

(d) Notice of consequences for failure to pay as ordered

Whenever an order is issued, the court shall inquire whether the parties understand the terms of the order, and the consequences of failing to comply with a payment order.

(e) Contempt

The court shall inform the defendant that his or her failure to pay in accordance with a payment order, absent a material change in financial circumstances, may result in further action to compel the defendant to pay, including a contempt proceeding. A judge shall not enter an adjudication of civil contempt or any sanction for contempt based on the defendant’s failure to make payments on a judgment unless (i) the court has previously ordered the defendant to make payments on a judgment after a payment review hearing, (ii) the defendant has failed to make the ordered payments, and (iii) at the time that the order for civil contempt or sanction for contempt issues, the judge finds that the plaintiff has proven defendant’s ability to make the ordered payments on the judgment without relying on exempt income or assets.

(f) Costs

If the decision of the court is for the plaintiff, the plaintiff’s actual cash disbursements for the entry fee, surcharge, and electronic filing fees, shall be allowed as costs. Witness fees and other costs shall be allowed only by special order of court. The court may, in its discretion, award additional costs in a sum not exceeding one hundred dollars against any party who has set up a frivolous or misleading claim or answer, or has otherwise sought to hamper a speedy and fair determination of the claim. The court may at any time amend the judgment to add the cost of service of any post-judgment process that was necessary to enforce the judgment.

(g) Acknowledgment of satisfaction of judgment

Within 21 days of full payment of a judgment, the plaintiff shall file an acknowledgment of satisfaction of judgment with the court. Upon the filing of such acknowledgement, the clerk shall recall any outstanding execution.

(h) Court determination of satisfaction of judgment

At the request of the defendant, and upon notice to the plaintiff, a judge or magistrate may order the entry of a docket notation indicating full satisfaction of the judgment if the defendant files an affidavit stating that he or she has made full payment of the judgment, and that the plaintiff has been requested to file an acknowledgment of satisfaction of judgment and refuses to do so, or that the present address of the plaintiff is unknown. The defendant shall accompany such affidavit with proof of payment of the full amount of the judgment, which may include canceled checks or money orders written by or on behalf of the defendant and made payable to and endorsed by the plaintiff, cash receipts for the full amount of the judgment made out to the defendant and signed by the plaintiff, or other documents demonstrating the plaintiff’s receipt of full payment of the judgment. Bank or other asset account numbers should be redacted pursuant to Supreme Judicial Court Rule 1:24: Protection of Personal Identifying Information in Publicly Accessible Court Documents. Any docket notation made pursuant to this subsection shall establish a rebuttable presumption of full payment of the judgment.

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