Protecting the Rights of Consumers For Over 25 Years

Question: I borrowed money from a neighbor in 2009. I signed a letter stating I would pay her back but it didn’t have a date. She is suing me. She will not take a payment plan and wants a judgment. Can I have the court set a payment schedule for the loan?

Answer: No. A note without a due date is payable on demand. A court will not create payment terms for the parties. A creditor is not obligated to settle a debt or create a payment schedule other than the one agreed to by the parties. Of course, since there are limits on the percentage of wages and the other assets that may be taken to enforce a judgment, a creditor will often accept a payment plan.