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

Interest may be awarded on judgments in California small claims court. The amount of interest owed can be calculated by the court at the rate of either 10% or the legal rate of interest, whichever is less. To calculate 10%, use the simple interest formula: interest = principal amount x rate of interest x number of years. The principal amount is the amount of the judgment. The rate of interest is .10, and the number of years is the number of years applicable since the date of the judgment. For the legal rate of interest, which is determined by state law, the calculation will be slightly different. The formula for legal rate of interest is: Current Judicial Council Rate + 2.5%. Find the current Judicial Council Rate on the California Courts website, and add 2.5%. Then use the same formula as above for 10% interest. If a debtor has not been paying up and there is a judgment in small claims court, the court may award interest of up to 10% or the legal rate of interest as interest on the judgment amount. This helps to compensate the creditor for the money owed that has not been paid. Calculating the amount of interest owed is relatively straightforward and can be done using one of the formulas provided.

Related FAQs

Are there alternate dispute resolution options available in small claims court?
Can I countersue the other party in a small claims court case?
What is the process for obtaining a garnishment order in a small claims court case?
What defenses can the other party raise in small claims court?
What happens if a judgment is not paid in small claims court?
What is the process for objecting to evidence in a small claims court case?
What is the procedure for submitting evidence to the court in a small claims case?
Is there a limit on the amount of time I can spend in small claims court?
How do I submit a written statement in a small claims court case?
How do I find out the status of my small claims court case?

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

Related FAQs

Related Blog Posts