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Paying the claim

Information about the defendant's payment options for a money claim in the Local Court - Small Claims Division.

If the plaintiff's claim is about money, and you agree with a statement of claim, you have a number of options.

  • Time limit

    Time limit

    You must act within 28 days of being served with the statement of claim. If you don't, the plaintiff can get a judgment against you and you may end up having to pay more.

You could try to negotiate with the plaintiff.  If you come to an agreement, the plaintiff may agree to discontinue (withdraw) the claim. This means there will be no judgment against you.

 An informal agreement with the plaintiff will not stop court action. If you come to an agreement with the plaintiff, you should put it in writing and let the court know. 

For more information see Settling your case.

You can pay the full amount owed and notify the court by filing a document called a ‘notice of payment’. This means there will be no judgment against you and the proceedings will be stayed (stopped).

The full amount owed will usually include any interest and the costs claimed by the plaintiff in the statement of claim. You can contact the plaintiff and ask them how they want you to pay, for example, cash, bank transfer, cheque. Make sure you get a receipt.

Once you have paid the full amount, you should file a notice of payment form at the court dealing with your matter. This is usually the same court where the statement of claim was filed unless your matter has been transferred to a different court or the court has ordered you to file documents at a different court. Once you have filed a notice of payment, the court will then stay (stop) all action in the case. 

To file a notice of payment, you need one form:

  • ​Form 34 – Notice of payment.

You can get a copy of the form from: 

You can also complete and file this form online using the NSW Online​ Registry.

Sample:  Sample notice of payment

If you agree that you owe the full amount claimed, including interest and costs claimed, but you can’t pay it all straight away, You can ask the other party if they will accept smaller payments in instalments.  

 If they do not agree, you can apply to the court to pay by instalments.  To do this, you will need to file an acknowledgement of liquidated claim form and at the same time file an application to pay by instalments.

If you file an acknowledgement of liquidated claim form This means the court will make a judgment against you. Once there is a judgment against you, the plaintiff can take action to enforce the judgment. As long as you pay the instalments on time, the other party cannot take any other enforcement action against you. If you are unsure if this is the best option for you, you should get legal advice.

For more information about paying by instalments, see Step by step guide - Application for payment by instalments.