Judgement Collection - Interest Calculation
We have seen ample success in collecting our judgments based on our screening criteria but I had a rather obscure question in this regard. When completing an eviction, and moving on to count two (damages hearing) after the eviction has been completed we're usually awarded a judgment of anywhere from $500 - $15,000 depending on the level of damage and back rent due from the eviction process. Our business goes with the traditional state set rate of 5% interest (2019) of judgement and begin the garnishment process. Anyway, we've made this process pretty seamless as we have brought on new team members that can keep a handle on this, and hit the time lines consistently every time. Here's the question. Lets say a judgement was awarded of $5,000 plus court costs. In my own county it costs $135.00 filing fee for the filing and court date of an eviction. So the total judgement comes to $5,135 with interest bearing on the $5,000 awarded. When garnishments occur, is the court costs repaid first, or the interest bearing amount? We have always done court costs first because it made it easier to calculate balances moving forward. I want to make sure we're in the right. Our local clerk of courts, said to ask an attorney or a CPA, our CPA said to ask an attorney, and our attorney said to ask a CPA. I know the amount seems small and insignificant, but when spread over multiple judgments and garnishments it can add up. For the record, we're not trying to make money off of the courts through this system, but rather become whole one more - I just want to follow the rules. Then again, I have heard some investors don't report their judgement earnings at all, as it was awarded by the court for a loss. Anyone have any ideas or insight on this?
Thank you!