When to renew your judgment
Youmust renew your Judgment before 10 years pass
If you wait even 1 day after 10 years, you’re too late and can’t try to collect your Judgment anymore.The earliest you can renew your judgment is after 5 years.
Generally, renewals last 10 years, but there are some exceptions
The general rule is that a renewal lasts 10 years. There is no limit on how many times a judgment creditor can renew the judgment.
This general rule applies to any judgment against a business or government agency, or when the debtor owes $200,000 or more. It also applies to any judgment where the money is owed due to a tort or fraud, or judgments for unpaid wages or other money due to an employee.
Broadly, a tort is when someone does something, usually dangerous or careless, and it causes someone to get hurt or damages something they own. For example, if someone runs a red light and causes a car accident. Common examples are assault, battery, trespassing, or negligence. A tort is not when someone breaks a contract. For example, when someone signs an agreement with a credit card company, but then does not make a payment they agreed to make. That is called a "breach of contract". It is not a tort.
If the balance owed is less than $200,000 and the money owed is related to medical expenses or personal debt, then an exception to this rule may apply. Otherwise, the general rule applies.
Limits on renewals for some judgments related to medical expenses or personal debts
As of January 1, 2023, a judgment can only be renewed once for 5 years if:
- The side that owes the money (the judgment debtor) is a person, not a business or government agency,
- Theprincipal balance owed is less than $200,000 and related to amedical expense or is less than $50,000 and related to a personal debt, and
- The money owed is not due to a tort, fraud, unpaid wages, or other money owed to an employee
If a judgment that meets the above requirements was renewed before January 1, 2023, then it cannot be renewed again. But the prior renewal will still last 10 years.
You can have interest added to the principal balance when you renew
When aJudgmentis renewed, any interest that’s built up to that point is added to the balance owed. Youare entitled to interest on the new balance (which now includes the interest). This makes the balance grow faster (“compounds” the interest).
