§ 850.Order For Application of Property to Satisfaction of Judgment - Contempt Proceedings - Installment Payments From Earnings - Modification of Order
Chapter 13: Limitation of Actions · Not amended since adoption on record · Last verified August 3, 2026
Full Text of § 850
Amendment History
R.L. 1910, § 5198; Amended by Laws 1965, HB 928, c. 300, § 6.
Plain-English Summary
Section 850 is the operative order that the debtor-examination proceedings build toward. After the hearing these sections provide for, the judge may order any of the debtor's nonexempt property, in the debtor's possession or under the debtor's control, applied toward the judgment, enforced by contempt if the debtor refuses or disobeys. The judge may instead, or in addition, order the debtor to pay the creditor, or apply toward the judgment, installments from nonexempt income, from whatever source earned or acquired, in an amount the court sets after weighing any payments the debtor already owes under other court orders or outstanding wage assignments.
The statute also closes an obvious dodge. If a debtor claims to work for a relative, or for a corporation a relative or other person owns or controls, without salary or for a salary so low it looks designed to defraud or impede creditors, the court can order installment payments based on the reasonable value of the services the debtor performs or on the debtor's earning ability. Either party can ask the court to modify the installment order later, on notice to the other, and failing or neglecting to comply with any order under this section is punished as contempt.
Frequently Asked Questions
Can a court order a judgment debtor to pay in installments out of income?
Yes. Section 850 lets the judge order the debtor to pay the creditor, or apply toward the judgment, installments of nonexempt income the court deems proper, after accounting for other legally required payments and outstanding wage assignments.
What if the debtor works for a relative for little or no pay to avoid paying the judgment?
If the court finds the low or missing salary is colorable and designed to defraud or impede creditors, it may order installment payments based on the reasonable value of the debtor's services or the debtor's earning ability.
Can this installment order be changed later?
Yes. The court may modify the order from time to time on application of either party, after notice to the other.
What happens if the debtor ignores the order?
Failure or neglect to comply is punished as contempt.