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§ 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

In one sentenceSection 850 lets a judge, after a hearing, order a debtor's nonexempt property applied to the judgment or order installment payments from nonexempt income, including income measured by the reasonable value of services the debtor performs for a relative without real pay, all enforceable and modifiable over time.

Full Text of § 850

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The judge after the hearing provided herein may order any property of the judgment debtor, not exempt by law, in his possession or under his control to be applied toward the satisfaction of the judgment, and may enforce the same by proceedings for contempt in case of refusal or disobedience. The judge may further order the judgment debtor to pay to the judgment creditor or apply on the judgment in installments, such portion of his nonexempt income, however or wherever earned or acquired, as the court may deem proper after due regard for any payments required to be made by the judgment debtor by virtue of law or prior order of a court or under wage assignments outstanding. Where the judgment debtor claims or is proved to be rendering services to or employed by a relative or other person or by a corporation owned or controlled by a relative or other person, without salary or compensation, or at a salary or compensation so inadequate as to satisfy the court that such salary or compensation is merely colorable and designed to defraud or impede the creditors of such debtor, the court may direct such debtor to make payments on account of the judgment, in installments, based upon a reasonable value of the services rendered by such judgment debtor under his said employment or upon said debtor's then earning ability. The court may, from time to time, modify an order made under this section upon application of either party upon notice to the other. A failure or neglect to comply with an order of direction of the court, shall be punished as for contempt.

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.

Source & verification. Section text is reproduced verbatim from Title 12 of the Oklahoma Statutes, enacted by the Oklahoma Legislature. Last verified August 3, 2026. · Official source
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