Legal Question in Credit and Debt Law in California

Re: Judgement

Yes. Judgments in California accrue simple interest at the rate of 10% per annum from the date of entry of judgment until paid. Moreover, judgments in California are valid for 10 years, after which they can be renewed for successive 10 year periods. Each time the judgment is renewed, it is possible to add the outstanding interest and costs, so that the amount you owe actually begins to earn more interest. (Example. If your judgment were renewed today, interest could be accruing at 10% per annum on the current balance of $6,200.00, instead of 10% of the original balance of $4,615.00.)

I suggest you figure out a way to pay the judgment, or as much as possible, off. If he judgment is not renewed, you will owe nothing.

Re: Judgement

The judgments accrue interest at 10% per year, plus some costs involved in trying to collect, which makes paying it sooner much better than later. I'd keep trying to negotiate--I suspect their demand will drop as you keep talking, and they'd rather have money now than the possibility of it later. If you do negotiate an amount, make sure you obtain a release of the judgment and a signed "satisfaction of judgment" to file with the court and remove the judgment.