| Paying Interest on Judgments By: James Goins & Carpenter PC
We all pay interest when we take out a loan at a bank, the interest rates will vary.
However, when we think about lawsuits we rarely think about issues such as interest. Often time issues such as pre-judgment and post judgment interest are ignored
In Tennessee, the law allows pre-judgment and post judgment interest in certain lawsuits filed in a court of law. In most tort cases, prejudgment interest is not permitted. However, if the judgment is entered in post judgment interest will start to accrue from the date the judgment is entered. Therefore, once a judgment is entered by a court interest will start to accrue and will be added on to the judgment. In some cases, particularly contract cases, prejudgment interest is permitted. Prejudgment interest may accrue from the date of the filing of the lawsuit. Remember, whether interest is allowed a judgment or post judgment is determined by the law of each state and may differ from state to state.
When dealing with a lawsuit, make sure that you always ask your attorney about pre-judgment and post judgment interest-Ask the attorney if interest is allowed, and if so when does it start to accrue and and ask the percentage rate used by the court in calculating prejudgment or post judgment interest. Of course, the calculation of interest depends upon the amount of the judgment and the interest rate permitted by law.
Click here if you have any questions about pre-judgment or post judgment interest.
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