I lost in Small Claims Court, but can’t afford to pay. What can I do?
Question & AnswerI lost in Small Claims Court, but can’t afford to pay. What can I do?
1. Understand how post-judgment interest is calculated
If you don't pay the debt right away, the will be entitled to . This interest increases until you pay the debt you owe.
The formula for post-judgment interest is:
|(total judgment amount) x (post-judgment interest rate %) ÷ (365 days per year) x (number of days from date of judgment to date payment received) = post-judgment interest owing|
For example, if you owe $1,000, the post-judgment interest rate is 2%, and you pay the amount 100 days after judgment, this is how much interest you would owe:
|1,000 x .02 ÷ 365 x 100 = $5.48 post-judgment interest owing|