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Do judgments earn interest?

Yes. In California, a judgment currently earns 10% simple (non-compounded) interest per year. Other states can 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. After outsourcing your judgment on a contingency future-payment basis; upon a successful recovery of your judgment, you get an average of 50% of what is recovered, often including interest. (Cash upfront sales of judgments are always at sharp discounts.)

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 sold or enforced.


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