Once upon a time, computing post judgment interest was really, really easy. But, as you’ll recall from my post in February 2013, Tennessee switched from a flat-rate of 10% to a variable rate under the (then) new version of Tenn. Code Ann. § 47-14-121.
Under that statute, the post judgment interest rate is subject to increase every six months. And, lately, it’s been steadily going up, every six months.
On January 1, 2019, it went up again, to 7.45%.
This is the highest that it’s been, since the statute changed.
About this time last year, I noted that the statutory rate of interest on Tennessee judgments was continuing to increase. At the time, the rate was 6.25%.
After bumping up to 6.5% in January 2018, it has now risen again to 7.0% (effective July 1, 2018).
As you’ll recall from my post in February 2013, Tennessee switched from a flat-rate of 10% to a variable rate under the (then) new version of Tenn. Code Ann. § 47-14-121.
As a creditor, this is great news. As a creditor lawyer, it’s kind of a pain in the neck.
Now, when I’m asked to prepare a payoff, I have to check the Tennessee Administrative Office of the Courts website to see what the applicable rate is. Then, for any increases or decreases, I have to adjust my math for that time period.