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Do judgments earn interest?

Yes. In California, a judgment currently earns 10% simple (non-compounded) interest per year. Other states may have different interest rates. Texas, Kentucky, and Colorado have annually compounded interest rates. Otherwise interest rates are only compounded each time the judgment is renewed. Upon successful recovery of a judgment, you get an average of 50% of what is recovered, often including interest. Federal Judgments usually have varying interest rates. See our Judgment Interest article.

To check the interest earned on a judgment, click here.

Of course interest earned is theoretical - until if and when a judgment is eventually enforced.


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