5. Understand how interest is calculated on your judgment
Question & Answer
How do I collect the money I’m owed?If the debt isn't paid right away, you can get . This interest increases until the debt is paid to you. It's automatically added to the amount you're owed.
The formula for post-judgment interest is:
| (total judgment amount) x (post-judgment interest rate %) ÷ (365 days per year) x (number of days from date of judgment to date payment received) = post-judgment interest owing |
For example, if you're owed $1,000, the post-judgment interest rate is 2%, and you're paid 100 days after judgment, this is how much interest would be owed:
| 1,000 x .02 ÷ 365 x 100 = $5.48 post-judgment interest owing |
