by rosienc » Wed Jun 09, 2010 02:43 am
I had a judgment file against me from an old Credit Union Loan, the judge set a monthly payment for me, however I missed a few months (3) due to change in hours and less income, now the lawyer is telling me that the interest has added and my balance due has double. I live in the State of FL, however this Judgment is for a creditor in NY.
Posted: Wed Jun 09, 2010 03:25 am Post Subject:
The short answer?
Yes. It's called "Post-Judgment" Interest. Normally it's only assigned after a person loses a civil lawsuit, and it sounds like that's what yours is. If you were NOT paying any interest on the unpaid balance prior to missing the payments, that's due to you agreeing to make your monthly payments. If you missed a payment, that may have triggered a clause in your repayment agreement whacking you with the interest. Could be that the interest is retroactively applied from the date of the judgment as well. All depends on the agreement you made.
As well, unless you have an absolutely horrific interest rate, it's pretty hard to double the amount owed in a couple of missed payments, unless there's an equally horrible penalty attached to missing payments. You sure it was only a couple of missed payments? Again, the math just doesn't add up...
InsTeacher 8)
Posted: Wed Jun 09, 2010 03:49 am Post Subject:
If you were making payments then you probably signed an agreement to do this. It probably states in the contract they they can hold you to the legal interest they would have gotten had you not signed that contract. Read the contract.
If state law allows 10% and the contract stated your only owed 5% as long as your payments were made on time, then it could double.
Add your comment