How do I calculate the amount of interest owed on a small claims court judgment?

In North Carolina, the small claims court system is designed to settle civil disputes of up to $10,000 without the need for formal legal representation. When a judgment is entered in a small claims court case, interest may start accruing on the amount of money owed by the defendant. To calculate the amount of interest owed, you should first find the applicable interest rate. In North Carolina, the amount of interest is set by statute. The statutorily-prescribed interest rate is currently 6% for claims of up to $25,000. Therefore, 6% is the interest rate applicable to a small claims court judgment in North Carolina. To calculate the amount of interest owed on the small claims court judgment amount, you multiply the amount of the judgment by the interest rate, which in this case is 6%. For example, if the judgment amount is $2,000, the amount of interest on the judgment would be $120 (2,000 x .06 = 120). Finally, you should add the amount of interest owed to the amount of the judgment. In the example above, the total amount due is $2,120 (2,000 + 120 = 2,120). It is important to note that the amount of interest owed on a small claims court judgment in North Carolina may be subject to change if the judgment is appealed or if the parties reach a settlement agreement. In addition, the interest rate for judgments exceeding $25,000 is set by the court. If you have any further questions regarding the interest rate or calculation of interest due on a small claims court judgment in North Carolina, you should contact a local attorney.

How do I calculate the amount of interest owed on a small claims court judgment?

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