Connecticut Senate Bill SB00118

Connecticut 2013 Regular Session

• Introduced: 1/11/13
• Refer: 1/11/13

Caption

An Act Concerning Postjudgment Interest.

Impact

The enactment of SB00118 would have significant implications for state laws concerning court-ordered financial obligations. By establishing a clear and automatic interest rate on unpaid judgments, the bill aims to enhance the financial recovery process for creditors while also providing clarity for debtors regarding their financial obligations. This could potentially expedite the resolution of financial disputes post-judgment and promote a more consistent approach across various cases.

Summary

SB00118 is a legislative proposal aimed at reforming the postjudgment interest framework in Connecticut. The bill mandates that whenever a court issues an installment payment order related to a money judgment, postjudgment interest will automatically accrue at a fixed rate of ten percent on any unpaid portion of the judgment. This change is intended to standardize the application of interest on money judgments and ensure that creditors are compensated fairly for the time value of money owed to them after a legal ruling.

Contention

Debate surrounding SB00118 may arise from concerns about the fairness of a fixed interest rate, particularly in instances of installment payments. Critics might argue that a ten percent interest rate could disproportionately burden debtors who are already facing financial hardships, while proponents of the bill may assert that such a rate is essential for protecting the rights of creditors. Additionally, the implications of this standardized interest rate could lead to more comprehensive discussions about the broader impacts on the debt collection industry.