Calculating Interest

[regsmom]

What is the name of your state (only U.S. law)? Oklahoma

I was awarded a judgment in Small Claims Court in Tulsa Oklahoma. The judgment is to "draw interest at the statutory rate".

I called the courthouse and was told the rate was 10.25%.
They couldn't, however, tell me if I am to compound this interest monthly or yearly.

Any advice?

 

[dcatz]

It’s simple interest, not compound interest, and 10.25% is the annual rate.

$X times 10.25% = annual rate.
$X times 10.25% divided by 365 = daily rate.

Here’s a “duration” calculator:
http://www.timeanddate.com/date/duration.html

Include the “end date” – i.e. add 1 day – because your award earns interest “from, on and after judgment”; you’re not calculating the duration between two dates.

 

[regsmom]

Another question

Sorry, but I am still confused.

My judgment was for $6,0000 and the payment schedule is supposed to be $150/month.

There is no duration - the paying party is going to continue to make payments until the judgment is paid in full. I say there is no duration because the paying party is NOT consistent in making payments - in fact, the paying party is currently 9 months behind in payments.

Do I calculate 10.25% of $6,000 each year until the judgement is paid?
OR
If the paying party actually makes payments, does that change the amount that collects interest?

 

[dcatz]

Absent a statutory provision to the contrary, it’s interest on the judgment until it’s paid.

Assuming timely payments, it would take 40 months to pay the judgment ($6,000 divided by $150)

40 months = $2,050 in interest ($6,000 times 10.25% divided by 12 = $51.25/mo times 40 = $2,050).

The important question is “why is there a 9-month default, when enforcement should have started 8 months ago?”

 

[regsmom]

The paying party went under the radar. I tried, but I couldn't find him. The rules of court allowed for me to have an asset hearing, but in order to do that, I had to serve the paying party - I actually live in Kansas, so finding him in another state isn't easy. I couldn't find him to serve him NOR could I afford an attorney to help me with the process, so I haven't been able to do anything.
Out of the blue, the paying party made contact through a 3rd party and wants to start settling up on this judgement. I just want to know how to calculate the interest so I can let him know how much he owes as he has asked.

If I understand correctly, I calculate interest on a yearly bases but do NOT compound it....right?

 

[dcatz]

Correct. The calculator was to assist you in calculating accrued interest at any given point in time – eg. 490 days from the date judgment was entered. That information would commonly be required to seek a writ or garnishment order for all monies due and owing.

May I also suggest that commercial online public record databases, of which there are many, can be a useful and cost-efficient means to locate the judgment debtor, if he tries to remain under the radar and you have little experience in skip-tracing. By the same token, use the fact that he has come to the surface now to gather as much personal data as you can. If he has re-located to another state, you may ultimately be faced with the need to domesticate the judgment in that state and enforce it.

 

[regsmom]

Thanks

Thanks for all your help!!