When a judgment is entered, the amount owed does not always stay the same. In many cases, interest begins to accrue from the date the judgment is entered until it is paid in full.
Understanding how judgment interest works helps explain why delaying payment can significantly increase financial exposure over time.
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Judgments Typically Accrue Interest Automatically
Once a judgment is entered, interest generally begins accruing by operation of law. The purpose of interest is to compensate the judgment creditor for the time value of money while payment remains outstanding.
Interest continues to accrue until the judgment is fully satisfied, regardless of whether enforcement action has begun.
Interest Can Add Up Quickly Over Time
Even when the original judgment amount is modest, interest can substantially increase the total balance owed if payment is delayed.
Judgments that remain unpaid for months or years may grow far beyond the original amount, especially when enforcement efforts are postponed.
Partial Payments Do Not Stop Interest Entirely
Making partial payments may reduce the principal balance, but interest often continues to accrue on any remaining unpaid amount.
Without full satisfaction of the judgment, interest typically keeps running until the balance is cleared.
Delays Increase Financial Pressure on the Debtor
Judgment interest increases the cost of nonpayment. Over time, the accumulating balance can make resolution more difficult and limit available options for settlement.
For this reason, judgment debtors who delay payment often face greater financial consequences than those who resolve judgments promptly.
Interest Can Affect Settlement Negotiations
Interest accrual can change settlement dynamics. As the balance grows, judgment creditors may become less willing to compromise, while debtors may face higher barriers to resolution.
Understanding how interest affects the total amount owed helps both sides make informed decisions during post-judgment negotiations.
Knowing the Interest Impact Helps Set Expectations
Many people focus only on the judgment amount and overlook how interest affects enforcement. Knowing that interest continues to accrue helps explain why unpaid judgments rarely remain static.
Understanding judgment interest reinforces why enforcement timing matters and why delays can have lasting financial consequences.