After failing to receive any payments for monies owed, you’ve decided it’s time to proceed with debt collection litigation. However, the original agreement you and your client laid out did not specifiy terms in the event of delayed or nonpayment.
So, can you ask for interest on the unpaid balance?
Yes. You are entitled to recover interest on unpaid balances in New York.
If you haven’t already asked for interest, then when pursuing litigation, your attorney must include a demand for interest in the summons and complaint. For commercial litigation cases, New York Courts will add 9% interest to the amount due.
A well-drafted summons and complaint will increase your likelihood of receiving a judgment that includes all costs. An optimal judgment will include:
- Principal balance
- 9% interest
- Court costs(CT)
- Attorney’s fees
Lastly, if you receive a judgment and are not paid in full, then 9% interest will continue to accrue on the unpaid judgment.
