Asking a Russian Court for Time to Pay: Deferral and Instalments of a Judgment

A debtor who cannot pay a judgment at once may ask the court that issued it for a deferral or for payment by instalments. Article 203 of the Civil Procedure Code (GPK) allows the court to grant either on the application of a party or of the bailiff, taking into account the financial situation of the parties and other circumstances, and it may also change the manner or procedure of enforcement. The Article sets no filing deadline, so the request can be made at any stage of enforcement.

A request costs little and may save a debtor from seizure of accounts, but it is not granted automatically. The court weighs the creditor's interests too. This guide explains what the court can do, what the ruling must say, what evidence persuades a judge, what a creditor can answer and what happens when the reasons disappear.

What the Court Can Grant

Article 203 provides three kinds of relief. A deferral moves the date of enforcement to a later time. Instalments allow payment in parts over set periods. A change of the manner or procedure of enforcement replaces one form with another, for example money in place of a specific item.

The court that decided the case hears the request. Arbitrazh courts have their own provision for the same relief in the Arbitrazh Procedure Code, and the debtor should file in the correct court according to the type of the original case.

The relief does not cancel the debt. It changes only the time or the form of the payment. Interest and penalties may continue to accrue under the law or the contract, unless the court says otherwise.

Who Can Apply and the Grounds

The parties to the case, and the bailiff, may apply. The grounds are the financial situation of the parties or other circumstances that make immediate enforcement difficult or impossible. The text does not give an exhaustive list, and courts assess each situation.

Typical grounds for a debtor are loss of work, serious illness, the need to support dependants and the absence of liquid property while real estate cannot be sold quickly. For a business debtor, the grounds may include a temporary loss of revenue and a documented plan to restore it.

A court expects the debtor to show good faith: a partial payment already made, a realistic plan and a proposal that does not ignore the creditor. A request that asks for five years to pay a small debt will be refused.

Contents of the Ruling

If the court grants the request, the ruling must state the period of the deferral or the schedule of the instalments. For instalments, it sets the size of each periodic payment in rubles or as a percentage of the debt. The relief can end on a date or on an event, such as a change in the debtor's financial situation or recovery from an illness.

The ruling is binding on the bailiff, who suspends or adjusts enforcement according to it. The debtor should deliver a copy to the bailiff promptly and ask for confirmation.

If the reasons for relief disappear before the date in the ruling, the court may terminate it on the application of an interested party or the bailiff. The debtor should therefore report significant improvements and not hide them.

Evidence That Persuades

The debtor attaches proof of income and expenses for several months, bank statements, a list of property and its encumbrances, documents about dependants and medical records if illness is claimed. Proof of the steps already taken to pay, such as partial payments, is valuable.

The debtor should propose a specific schedule. A table that shows monthly payments, tied to expected income, makes it easier for the court to approve. Vague promises are ignored.

If the debtor lives abroad, income and expense documents from foreign sources are translated and certified. Because the court usually decides on the papers, everything must be attached to the request; a Russian representative with a power of attorney can file it and follow the case.

The Creditor's Position

Under Article 203.1 of the GPK, the court decides the request within ten days of receiving it, without a hearing and without summoning the parties, so the creditor's objections should be filed in writing as soon as he learns of the request. The creditor can argue that the debtor has assets, that the delay harms the creditor, that the debtor concealed income or that the proposal is unrealistic.

A creditor may also agree to a payment plan. A settlement agreement approved by the court is an alternative to a ruling under Article 203 and gives the creditor stronger guarantees, for example a penalty for a missed instalment.

If the creditor is a person who depends on the money, such as a recipient of support or compensation for harm, the court gives his interests more weight.

Repeat Requests and Appeals

A new request for deferral or instalments, or a request to terminate relief, is handled in the same way as the original, according to the practice summarised in the Supreme Court's plenary resolution cited in the commentary. A debtor whose request was refused can file again if the circumstances have changed.

A ruling on the request may be challenged by a private complaint within the period set by the Code. The party who plans to appeal should read the ruling and note the date of receipt.

The debtor should not rely on the request to stop all measures. Until the court rules, the bailiff may continue, and a separate application to suspend enforcement may be needed.

Practical Steps

Check the judgment and the enforcement proceeding. Collect the evidence of the financial situation. Prepare a payment schedule that the debtor can actually keep. File the request in the court that gave the judgment and send a copy to the creditor. Give the ruling to the bailiff and keep paying according to the schedule. Report any change in the situation.

The attorney prepares requests for deferral and instalments, prepares written objections for creditors and negotiates settlement. First review covers the judgment, the enforcement papers and the debtor's finances.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.