Legal Question in Civil Litigation in Maryland
How is judgement interest accrued?
I won a judgement on a civil case and the judgement included post-judgement interest at the legal rate. How does this accrue? Monthly or yearly? If the amount of the judgement is $650 and has not been paid in 15 months, how much is the judgement now? How much is interest at the legal rate? 6%? How long does interest accrue for? Is there a statute of limitations on the time the initial judgement can gain interest? Is it compounding? Does the interest amount gain interest?
2 Answers from Attorneys
Re: How is judgement interest accrued?
Post-judgment interest accrues at the "legal rate", which in Maryland is 10%. This is simple interest and is not compounded. This means that a $1000 judgment would yield $100/year in interest. Judgments in Maryland do expire after 12 years -- however, they can be renewed for successive periods indefinately.
Lawrence R. Holzman, Esquire
Joseph, Greenwald & Laake, P.A.
6404 Ivy Lane, Suite 400
Greenbelt, MD 20770
(301) 220-2200
fax (301) 220-1214
Disclaimer: Please note that the posting of this response is not intended to constitute legal advice. You should contact an attorney to obtain information applicable to your situation. This posting is not confidential or privileged and does not create an attorney/client relationship.
Re: How is judgement interest accrued?
The legal rate of interest on a MD judgment is 10% simple (not compounded). Interest on a $650 judgment for exactly 15 months (1.25 years) would be $81.25. Interest accrues until the judgment is satisfied, but you do not get interest on interest.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
