Debt Collection, Garnishment, Repossession

questions & answers

Question: We were sent to court for monies owed to an apartment compex. The judgement was against us. They were awarded the full amount, prejudgement interest, courtcosts, and attourney's fees. We made payment arrangements to prevent garnishment. now they are charging us interest on our payments but they were not awarded postjudgement interest. Are they allowed to do this? Is there anything that we can do if they shouldnt be charging us this extra money??

Answer: Charging post-judgment interest is illegal if it is not awarded. You should be absolutely sure they were not awarded post-judgment interest, as the statutory rate is 10% and most judges award at least that amount. Read the judgment to make sure, since often on the apartment complex judgments it is just a form that reads something like this: “With interest theron at the rate of 10% per annum from the date of judgment until paid in full, with accruing costs.” There is no checkbox next to this form, the creditor just gets it automatically unless the judge strikes it out. Next, review the payment arrangements you made to avoid the garnishment. Do you have any of it in writing? Did you agree to post-judgment interest as part of your deal to avoid a garnishment? That would be legal and an expected requirement if the amount of your voluntary payment is less then the amount of the expected garnishment. If you are still sure there is no post-judgment interest and you did not agree to it, you can write the creditor (call them too, it might be fixed on the phone) and tell them that interest was not awarded, and you would like a current balance and payment history. If they do not respond to fix the error, you can file a Motion for Relief with the court. You will have to drive there and fill out the form at the counter. Bring a copy of the judgment and circle the language that strikes out their post-judgment interest and attach it to the motion. You can tell the court exactly what you wrote in your question, and the judge can then decide.

QUESTIONS

  • We were sent to court for monies owed to an apartment compex. The judgement was against us. They were awarded the full amount, prejudgement interest, courtcosts, and attourney's fees. We made payment arrangements to prevent garnishment. now they are charging us interest on our payments but they were not awarded postjudgement interest. Are they allowed to do this? Is there anything that we can do if they shouldnt be charging us this extra money??

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