Legal Question in Credit and Debt Law in New York
debt in judgement, what about interest?
A third party purchased a debt against me and brought it to a Judge who entered a judgment of $2400. The original charge in 2000 was $700. My account was frozen with $1400 in it. The creditor wants the $2400 which they have added interest, $2700. Is it legal for them to add interest after judgment? Is there a limit of money or time or theoretically will it keep going up endlessly. I offered them the 1400 plus a payment plan of $600 which they refused. Any advice?
2 Answers from Attorneys
Re: debt in judgement, what about interest?
If the court entered judgment, the amount is correct. Interest can be entered before the judgment is entered and continues to accrue AFTER the judgment is entered. You cannot force the creditor to take anything less than the full amount they are entitled to under the law. Of course, they have to find assets. If you paid them the money from the bank account and you have nothing else for them to seize, you are safe until they find other assets. If the creditor won't settle, there is nothing you can do....They will continue to search for assets until they either get tired of it or they find money and get the judgment satisfied. Remember, judgments are good for 20 years. They accrue interest at 9% per annum. Good luck.
Re: debt in judgement, what about interest?
The law provides a 9% interest per year on a judgment.
Good Luck
RRG
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