How do I calculate interest on a judgement that has not been paid even after payment arrangements have been made?
Question Details:
Our company won a judgement under $5,000.00 in MD. Payment arrangements were made but the defendant failed to pay and has since moved to FL. We plan on garnishing his wages but the court will not tell us the interest we are allowed to claim on the judgement. How do we determine the interest percentage to add on the the original judgement?
Hello. I am a Maryland barred attorney and practice in this area. The legal rate of post-judgment interest in this state is ten percent (10%) per annum. However, if you reached a settlement agreement it is possible that another interest rate applies per the default terms of your agreement.
Please note that as a judgment creditor, you will be required to file periodic reports and appropriately allocate any payments. You will also need to do a two-stage process for most collections out-of-state. You may wish to consult with an attorney and/or have the attorney help you prepare the garnishment papers and/or reports.
