Also known as: installment payments · instalment payment · instalment payments · installments · payment in installments
Written by attorneys — see sources below.
A payment made as part of a series of periodic payments under an installment plan or contract. The payment discharges a portion of a larger obligation that is spread over time rather than due in full at once.
After Harry died, the probate court awarded Regina and the minor children a family allowance to cover living expenses during administration. The personal representative paid the allowance in monthly installments rather than a single lump sum because the estate's cash flow was limited. Regina received the first three payments on schedule before the estate sold additional assets.
Ira Irving obtained a divorce decree requiring him to pay Isabelle Inman $2,000 monthly in maintenance. Two years later Ira lost his job and moved to modify the decree. The court reduced the amount only for installments that accrued after the motion was filed because the change in circumstances was substantial and continuing.
Ironwood Capital sold a warehouse to Insight Consulting under an installment land contract that required monthly payments over ten years. Insight missed three consecutive payments. Ironwood retained legal title and initiated forfeiture proceedings under state law that treats the contract as a security device.
Iris Energy issued a promissory note to Ironclad Industries calling for principal payments in twelve equal monthly installments. Iris missed the fourth installment. The note became overdue on the day after the missed payment and remained overdue until Iris cured the default by paying the installment.
Mrs. Fuentes bought a stove and stereo under conditional sales contracts that required monthly installment payments. She made payments for more than a year but then disputed a repair bill and stopped paying. The seller filed for repossession of both items while only about $200 remained due.
Margarita Fuentes, a Florida resident, purchased a gas stove and a stereophonic phonograph from the Firestone Tire and Rubber Company under conditional sales contracts calling for monthly payments over time, with Firestone retaining title until full payment. After making payments for more than a year, about two hundred dollars remained due. A dispute developed between Fuentes and Firestone over servicing of the stove. Firestone then instituted an action in small claims court for repossession. It obtained a writ of replevin from the court clerk by submitting form documents and posting a bond in double the value of the property. A deputy sheriff and Firestone agent seized the stove and stereo from Fuentes's home the same day. Fuentes subsequently brought an action in federal district court challenging the constitutionality of the Florida prejudgment replevin procedures. A three-judge district court was convened and upheld the statute. In the consolidated Pennsylvania case, several residents purchased household goods such as beds, tables, and other items under similar installment contracts. After claimed defaults, sellers obtained writs of replevin from a prothonotary upon ex parte applications and posting of bonds. County sheriffs seized the goods from the buyers' homes without prior notice. This included one instance where a former deputy sheriff obtained a writ for his son's clothes, furniture, and toys. The Pennsylvania appellants filed suit in federal district court, where a three-judge court upheld the statute. The Supreme Court noted probable jurisdiction of the appeals from both district court decisions.
View caseWilliams purchased furniture from Walker-Thomas under a series of installment contracts. Each new contract provided that all prior payments would be credited pro rata across every outstanding balance. When Williams defaulted on one item, the seller claimed the right to repossess all previously purchased goods because the contracts treated every installment payment as applying to the entire account.
Appellee Walker-Thomas Furniture Company operates a retail furniture store in the District of Columbia. During the period from 1957 to 1962, each appellant purchased several household items from the company, with payment to be made in installments. The terms of each purchase appeared in a printed form contract that set forth the value of the item and purported to lease it to the purchaser for a stipulated monthly rent payment. Title remained in the company until the total of all monthly payments equaled the stated value, after which the purchaser could take title. In the event of default on any monthly installment, the company could repossess the item. The contract further provided that the amount of each periodical installment payment would be inclusive of and not in addition to payments under prior leases, and that all payments made would be credited pro rata on all outstanding leases, bills, and accounts due the company. This provision kept a balance due on every item purchased until the balance due on all items was liquidated. As a result, the debt from each purchase was secured by the right to repossess all items previously purchased by the same buyer, and each new item became subject to a security interest from previous dealings. On May 12, 1962, appellant Thorne purchased a Daveno, three tables, and two lamps with a total stated value of $391.10. Shortly after this purchase, Thorne defaulted on the monthly payments, leading the company to seek replevin of all items purchased since the first transaction in 1958. On April 17, 1962, appellant Williams bought a stereo set of stated value $514.95. At that time her account showed a balance of $164 from prior purchases. The total of all purchases over the years came to $1,800 with total payments of $1,400. Williams also defaulted shortly thereafter, prompting the company to seek replevin of all items purchased since December 1957. The Court of General Sessions granted judgment for the company in these cases. The District of Columbia Court of Appeals affirmed the judgments. This court granted the appellants' motion for leave to appeal. Prior to the last purchase by Williams, she had reduced her account balance to $164. The reverse side of the stereo contract listed the name of her social worker and her $218 monthly stipend from the government. At the time of the purchases, the company was aware of Williams's financial position and her need to support herself and seven children on that amount.
View caseThe personal representative may pay the family allowance in periodic installments when doing so serves the needs of the surviving spouse and dependent children during administration. The allowance remains subject to the one-year cap if the estate is inadequate to pay allowed claims.
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No. Modification of a maintenance or support decree affects only installments that accrue after the motion for modification is filed. Installments that have already become due remain enforceable as originally ordered.
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The seller may pursue forfeiture in some jurisdictions or foreclosure proceedings that treat the contract as a security device. State law determines whether mortgage-like protections apply to the buyer in default.
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The instrument becomes overdue upon default in payment of an installment if no acceleration has occurred. It remains overdue until the default is cured by payment of the missed installment.
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…sum $1,500,000 is to be advanced by the lessor to the lessee, “but not to its successors or assigns,” and is to be repaid in installments. Again no assignment or sale of the lease may be made without the consent of the lessor. This lease is valuable. In making it Mr. Gerry acted in good faith without any collusion with Mr.…