Legal Question in Business Law in California
Small Claims
I have been told I am judgment proof, but I am wondering, do debts in small claims have interest?
3 Answers from Attorneys
Re: Small Claims
Yes.
Judgments (including small claims judgments) accrue interest at the rate of 10% per year.
They are enforceable for 10 years, at which point they can be renewed for another 10 years.
Re: Small Claims
Small claims judgments in California, like all other court judgments, accrue interest at the rate of 10% per annum simple interest.
Re: Small Claims
"Judgment proof" is kind of a slang term with no precise legal meaning or significance. A better term might be "collection proof" - a creditor can get a judgment against someone without a dime to their name, but the debtor, having no money, can't be collected from....but the unpaid judgment continues to sit there on the public record, and yes, it accumulates interest.
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