Can post judgement interest be challenged?
3 attorney answers
In California, a judgment accrues interest at the rate of 10 per cent a year. This rate is statutory, contained in a statute. The judgment creditor can also seek certain costs (filing fees, etc.) and attorney's fees if further action is needed to enforce (collect) the judgment. You cannot "challenge" the interest and costs unless there is some way to dispute the judgment itself. If you were served with a summons and had notice of the lawsuit, but did not seek advice from an attorney in time to avoid the judgment, and the plaintiff got a default/default judgment, you may be out of luck. But, you might want to seek advice from a collection defense attorney, who can review the pleadings to see if there might be grounds to set aside the judgment. If you cannot set aside the judgment you will probably have to pay the interest, or file a bankruptcy case to discharge the debt. Funds in tax-exempt retirement accounts are almost always EXEMPT (protected from creditors).
With respect to the wage garnishment and/or bank levy: you can file a Claim of Exemption to lower the garnishment (max is 25%); you can claim exemptions for certain funds held in your bank accounts, such as wages received within the last 30 days, Social Security benefits, disability benefits, etc. If you need help with a claim of exemption, a collection defense attorney OR consumer bankruptcy attorney may be able to advise you.
This answer is for general information purposes only and is not legal advice. No attorney-client relationship is intended or formed by the posting of this answer. Law Office of Lisa J. Espada * San Francisco, CA *
Probably not. What’s your leverage? They’re still entitled to all of it, interest and all. Sure, an attorney can ask—but don’t hold your breath.
This is general advice. You are anonymous. If you PM me I won’t know what it’s about.
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Yes. Your attorney may negotiate reduction of accrued interest, early payoff.
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