How Much is Post-Judgment Interest in South Carolina?
That used to be an easy question to answer, but the legislature has been busy. John Nichols recently broke it down for us. The applicable statute is Sec 34–31–20.
If the cause of action arose prior to 1/1/01, then the rate is 14% from the date of judgment until 7/1/05, the effective date of H 3008, at which time it's prime plus 4 percentage points.
On August 9, 2005, the supreme court issued an order confirming that prime for the first issue of the Wall Street Journal for January 2005 was 5.25%, so that the rate from 7/1/05 drops to 9.25%. Next January the Court will issue an order setting forth the new rate for 2006, based on the prime rate in the first issue of the WSJ.
If the cause of action for the judgement arose after 1/1/01, but before 6/30/05, then your judgment draws interest at 12% through 6/30/05, after which time it drops to 9.25%.
If the cause of action for the judgement arose after 6/30/05, then the post-judgment interest is 9.25%.
Hence, the judgment draws either 12% or 14% for its life (depending on whether the cause of action arose or accrued prior to 1/1/01) until 7/1/05, at which time all judgments drop to 9.25%. At that point, it appears that ALL judgments are compounded annually at prime +4% as set by the SC Supreme Court in January.
Thanks for the help, John. And they told me there would be no math in the law.
After doing all the math to figure up post-judgment interest, what do I file with clerk to include that amount to the amount of the original Judgment and does that form need to bee signed by a magistrate, notary or my self?
Jenny,
I have to admit, that I'm not certain of the exact format for registering post judgment interest from Magistrate's judgments to the Circuit Court.
I *do* know that the way to register a Magistrate's judgment is to file a copy with the Circuit Court and pay a fee. I *believe* that the fee used to be $5, but don't know if it has gone up. I don't do any Magistrates (small claims court) practice anymore, but I'm sure if you called either the Magistrate's or circuit court they could help you on that.
Also, once it's registered at the Circuit Court and you hire a Sheriff to serve the judgment on the debtor, there is a space on the form for post judgment interest.
Good luck with it, and I hope you collect.
does post judgment interest accrue for attorney fees ordered by the Court along with the judgment
When calculating pay offs, does the judgment interest change from year to year based on each new Supreme Court Order or does the rate stay the same for the life of the judgment based on the date of filing? It was my understanding that the rate stayed the same but recently I have been challenged on this issue.
The main post here is inaccurate. Interest on pre-Jan 1, 2001 causes of action runs at a constant 14% per year. The rate does not vary on those judgments. Interest on causes of action from 1/01/01 to 7/01/05 runs at a constant 12%.
The current version of the statute states, "This section applies to all judgments entered on or after July 1, 2005."
The previous Act's effective date section provided, "This act takes effect January 1, 2001, and applies with respect to interest calculated pursuant to causes of action arising or accruing on or after that date."
In Collins Music Co. v. IGT, 365 S.C. 544; 619 S.E.2d 1 (Ct. App. 2005), the Court of Appeals considered the effect of the previous version of the statute on a cause of action arising before 1/01/01. It held that the effective date language of that statute meant that the 2000 amendment did not apply, and thus interest ran at a constant 14% until the judgment was satisfied. The same logic indicates that a cause of action arising between 1/01/01 and 7/01/05 runs at a constant 12%.
Just goes to show, even the best can make mistakes.
