If you are awarded a judgment in Florida, chances are, you are entitled to interest which accrues from the time the judgment is entered until it is paid (post judgment interest). In some cases, you are also entitled to interest which accrues from the time the debt was originally due until the time the judgment was entered (pre judgment interest). Pre judgment interest is a little more of a gray area, can vary case-to-case and typically involves contract cases. In this article, we will focus on post judgment interest.
Florida’s Chief Financial Officer (CFO) determines the interest rate. Prior to October 2011, the interest rate was adjusted every year by the CFO. In October 2011, Florida statutes were changed and the interest rate is now determined every quarter. For a detailed explanation of how and when the rate is adjusted by the CFO, see Florida Statute 55.03.
So how is your judgment’s interest rate determined?
Whatever the current interest rate at the time your judgment is entered is the interest rate applied to your judgment.
Does the interest rate on your judgment ever change?
Potentially, yes. Prior to October 2011, the statute made the calculations a little easier. At the time, whatever the interest rate at the time your judgment was entered would be the interest rate for the lifetime of the judgment. However, now a little more math is required to figure out exactly how much interest is owed. At the time your judgment is entered, the current interest rate for that quarter is applied. After that, every year on January 1st, the interest rate as of that day will be the new interest rate on your judgment for that whole year. So when the judgment debtor is ready to pay, depending on how much time has passed, there may be several interest rates to calculate (potentially a different one for each year the judgment has gone unpaid).
How do you figure out which interest rate(s) apply to your judgment?
Click the following links on the Florida’s Chief Financial Officer’s website to view current and historical rates.
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