Winning a lawsuit in New York is an important victory—but what many people don’t realize is that a judgment can actually grow in value over time. Thanks to interest and certain recoverable fees, the amount a debtor owes doesn’t stay the same after the court’s decision. It can increase significantly the longer it remains unpaid.
At Warner & Scheuerman, we often work with clients who are surprised to learn that their judgments continue to accrue interest every single year until they’re satisfied. Understanding how judgment interest works—and how to make the most of it—can help creditors recover more than they initially expected.
The Basics: What Happens After You Win a Judgment
When a New York court awards you a money judgment, it means the court has determined that someone (the debtor) owes you a specific amount. But getting paid is rarely automatic. The debtor may delay, dispute payment, or simply fail to pay.
Fortunately, the law provides a built-in incentive for debtors to pay sooner rather than later: interest accrual. From the date of the judgment, interest begins to accumulate, and that interest continues until the debt is fully paid or otherwise resolved.
Statutory Interest Rates in New York
In New York, the statutory interest rate on money judgments is 9% per year. This rate applies to nearly all civil judgments unless a contract specifies a different rate.
That means if you win a $50,000 judgment and the debtor doesn’t pay, the debt will grow by $4,500 every year until it’s satisfied. Over 10 years, that’s an additional $45,000 in interest alone—nearly doubling the amount owed.
Interest applies even if you’re actively trying to collect or the debtor is making partial payments. The law ensures that creditors are compensated for the time and effort it takes to recover what’s rightfully theirs.
How Interest Adds Up Over Time
To see how powerful interest can be, consider this example:
- Original judgment: $25,000
- Annual interest rate: 9%
- Unpaid for: 10 years
After a decade, the total amount owed would reach roughly $47,500, not including any additional collection costs or fees.
This compounding effect is why it’s so important to keep track of your judgment over time. Even if the debtor isn’t paying right now, your right to collect doesn’t disappear—and the total amount continues to grow.
Recoverable Fees and Costs
In addition to interest, creditors in New York can often recover certain collection-related fees. These may include:
- Marshal or Sheriff fees: Costs for serving executions, conducting levies, or selling assets.
- Filing fees: Expenses for docketing the judgment or renewing liens.
- Legal fees: In some cases, especially where contracts or statutes allow it, creditors can recover attorney’s fees for post-judgment collection efforts.
These costs are added to the total judgment balance, which means the debtor owes not only the original amount and interest but also the reasonable costs of collection.
Warner & Scheuerman carefully tracks these amounts for clients to ensure every dollar owed is properly included and recoverable.
Renewing and Maintaining Judgments in New York
New York judgments remain enforceable for 20 years, but property liens associated with them last only 10 years. Before the lien expires, you can file for renewal, giving you another 10 years to maintain your claim against the debtor’s property.
Even if a debtor doesn’t have assets now, renewing the lien ensures that when they do—such as selling a home or refinancing—it must be satisfied before the transaction can go through.
Over those years, the 9% interest continues to accrue, often transforming a modest judgment into a substantial recovery.
Why Some Debtors Wait—and Why That’s a Mistake
Some debtors assume that ignoring a judgment will make it go away. In reality, the opposite happens. Every day they delay payment, interest continues to build. By the time a creditor begins enforcement—through a bank levy, wage garnishment, or property lien—the total amount owed may have grown far beyond the original debt.
For creditors, this creates an opportunity. Even if the debtor refuses to pay initially, the law ensures they’ll owe more later. Working with an experienced attorney can help ensure those accumulating amounts are properly calculated and enforced.
How Creditors Can Maximize Judgment Value
Here are a few ways to make sure your judgment keeps working in your favor:
- Keep track of interest. Maintain clear records of how much interest accrues each year.
- Renew liens on time. Don’t let property liens expire—file for renewal before the 10-year mark.
- Add recoverable costs. Include fees for Marshals, court filings, and other expenses in your collection totals.
- Act strategically. File bank levies, wage garnishments, and liens as soon as possible to secure your position.
- Consult professionals. Legal guidance ensures every dollar of interest and cost is properly accounted for.
Final Thoughts
Judgments in New York are powerful tools—and they don’t just sit still. Thanks to the state’s 9% interest rate, every year that goes by can make your judgment worth more. Over time, this steady growth turns patience and persistence into greater financial recovery.
If you’ve won a judgment but haven’t been paid, Warner & Scheuerman can help you calculate the true amount you’re owed, including interest and recoverable fees. By keeping your judgment active and enforcing it effectively, you can ensure that time works in your favor—not the debtor’s.