A monetary judgment once entered, gives the judgment creditor the right to seek to collect the amounts due.
After the entry of the judgment[1], the creditor in many cases, may not make an immediate attempt to collect or may go a long time without making any collection effort. Lack of collection activity does not mean, however, that the judgment is no longer collectible or that the judgment debtor no longer owes the sums due. Under Florida law, a judgment may be valid for up to twenty (20) years from the date that the judgment was entered.[2]
The danger of the “wait and see” approach when it comes to monetary judgments lie in the fact that a judgment creditor is legally entitled to post-judgment interest at the prevailing statutory rate, along with any collection costs incurred. Florida’s statutory judgment interest rate is set by the Chief Financial Officer for the state. As of October 1, 2018, the post-judgment statutory interest rate was set at 6.09% per annum. Please note that historic judgment interest rates may differ. With the combination of post-judgment interest and collection fees and costs, it is not uncommon for a judgment to double, triple, or even quadruple the amount in a matter of years. This means that the longer that you wait, the higher the amount that you owe could be. As such, it is best to address a judgment as soon as possible.
Many factors determine how best to address a monetary. To determine the best option for you, it is advisable to speak with a law firm experienced in debt-related matters.
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[1] The court’s determination of the rights of the parties to the lawsuit is called a judgment.
[2] See Fla. Stat. §55.081
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