How to Structure Dues Debt into Instalments (Payment Plan)

Sometimes a resident's dues debt accumulates for various reasons and reaches an amount that cannot be paid at once. In such cases, structuring the debt into instalments (binding it to a payment plan) both provides ease for the resident and protects the management's receivable. In this guide we explain how a dues debt instalment plan is made, who decides and what needs to be paid attention to.

What is an instalment plan, and why is it made?

An instalment plan is the payment of an accumulated dues debt not at once but piece by piece according to a certain plan. The aim is to offer a payment opportunity to a resident who is genuinely in difficulty while also securing the receivable. This is different from writing off the debt (amnesty); the debt does not disappear but is bound to a manageable plan. An instalment plan is both a humane and a practical solution.

Who decides on the instalment plan?

Because the dues debt is the joint receivable of all unit owners, an instalment plan should also be made not at the manager's initiative but preferably by a decision of the assembly of unit owners. The assembly can decide the conditions under which and how many instalments the debt is to be paid. The manager implements this decision. If the assembly delegates authority, the manager can make a payment plan within the set framework. What matters is that the decision be legitimate and transparent.

What should the payment plan contain?

A solid payment plan (instalment agreement) should include the following:

• Total debt: The total amount of the debt with a month-by-month breakdown.
• Late payment penalty: How the accrued penalty is factored in, if any.
• Number and amount of instalments: How many instalments and how much per instalment.
• Payment dates: The due date of each instalment.
• Current dues: That the current dues will be paid alongside the instalments.

Making the plan in writing prevents future disputes.

Attention to the principle of equality

Equality is also important in an instalment plan. The payment plan must not be arbitrary; it must be offered to everyone in a similar situation with the same approach. Distinguishing between someone who continuously and deliberately does not pay and a resident who is genuinely in difficulty may be reasonable, but the application must be transparent and consistent. Otherwise, residents who pay regularly may feel unfairness. A fair instalment plan preserves trust.

Current dues must also be paid

There is an important rule in an instalment plan: while paying the past debt in instalments, the resident must continue to pay the current dues regularly. Otherwise, instead of decreasing, the debt keeps growing and the plan becomes meaningless. For this reason, the payment plan must consider both the past debt instalments and the current dues together. If new debt accumulates while instalments are being paid, the purpose of the instalment plan is defeated.

Summary

A dues debt instalment plan is the payment of an accumulated debt piece by piece according to a plan; it does not write off the debt but makes it payable. Because it is a joint receivable, it should preferably be made by an assembly of unit owners' decision. The payment plan should include the total debt, the number of instalments, the due dates and the current dues. The principle of equality must be observed; the resident must also pay the current dues along with the instalments.

Tracking instalment plans and current dues together manually is complex. Apt Yönet tracks payment plans and current debts together, providing the management with a transparent system in which instalment plans can be easily managed.

---

Frequently Asked Questions

Can dues debt be structured into instalments?

Yes. Accumulated debt can be bound to a payment plan, preferably by an assembly of unit owners' decision.

Who decides on the instalment plan?

Because it is a joint receivable, preferably the assembly of unit owners; the manager applies it within the authority given.

What happens to the current dues during instalment payment?

The current dues must also be paid regularly; otherwise the debt keeps growing and the plan becomes meaningless.

Does an instalment plan write off the debt?

No. The debt does not disappear; it is only bound to a manageable plan. This is different from an amnesty.

---

This content is for general information only and does not constitute legal advice. You are advised to consult a legal expert about your specific situation.