QUESTION
In Michigan can a judgment debtor add interest only on amount of judgment or can they add interest to the entire balance that includes interest?
Asked on Oct 13th, 2012 on Bankruptcy - Michigan
More details to this question:
In Michigan can a judgment debtor add interest only on amount of judgment or can they add interest to the entire balance that includes interest? I have a judgment against me for total $5596 and in not quite 18 months the interest is $1426 and I have paid them $400.The most interest I calculated is $1135 adding interest to interest accumulated balance. Are they right or what should it be? And if they are wrong how should I approach it they are not easy to deal with I am trying to get back on my feet and pay it off but the interest is adding up so quickly.
2 ANSWERS
The interest rate is statutory and can be found on the Michigan courts' website. The interest accumulates on the unpaid balance that includes unpaid interest. Current rates are extremely low now; check on the website as the statutory interest should well below $1100. http://www.courts.michigan.gov/Administration/SCAO/Resources/Documents/other /interest.pdf As you can see, the interest rate on money judgments approximates 2%.
Answered on Oct 15th, 2012 at 4:24 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Generally interest is calculated on the unpaid balance, which includes unpaid interest previously accrued. Without additional information I cannot opine on the rest of your situation as presented.
Answered on Oct 15th, 2012 at 4:06 PM