§3204 Installment Payment Order

Summary

A court can order a person who owes money to the United States to make regular installment payments if the person is getting (or will get) substantial nonexempt disposable earnings from self-employment that cannot be garnished, or if the person is hiding or diverting significant earnings or property received instead of pay. The United States must ask the court and give notice to the person like a court summons or by registered or certified mail with a return receipt. At a hearing, the court will decide the payment amount by looking at the person’s income, resources, basic needs and dependents, other judgments they must pay, and how much they owe the United States. Either the United States or the person who owes money can ask the court to change the order if the person’s finances change or new assets are found; the court can raise, lower, change the schedule, or require full payment. The court cannot issue this order if a writ of garnishment for the same debt is already in effect, and the order only applies to nonexempt disposable earnings.