Legal Question in Credit and Debt Law in New York

Under New York law, judgments accrue interest at a rate of 9% per annum (i.e. yearly). Pre-judgment interest also accrues at the same rate. Prejudgment interest is the interest from the date you stopped paying your creditor up and through trial or inquest. Your judgment may also have legal fees included. Most commercial contracts permit the prevailing party to recover their legal fees. That said, the seemingly inflated amount of the judgment is probably accurate.

However, you can and should attempt to have the judgment resolved because it's only going to get larger.

There is some good news. If your creditor's business isn't doing well, its owners may accept pennies on the dollar. For example: If the judgment is for $20,000.00 and your creditor is suffering, he or she may be willing to accept $5,000.00. Your creditor may even accept the $5000.00 in monthly installments.

Do not negotiate on your own behalf. Retain an attorney to negotiate for you. The legal fees to settle a judgment are generally inexpensive because the work only involves a few phone calls and documents.

I hope this is helpful.

Mr.Isaacs has given good advice. You ignore a judgment at your own peril.