Billions of dollars of judgments are entered each year which are destined to go uncollected. According to national averages, roughly 80% of all judgments never obtain any satisfaction whatsoever. For example, in New York State, between 1992 and 2000 courts awarded in excess of 700,000 judgments which remained unsatisfied.
The duration of judgments varies from State to State ranging from five years to twenty years. In many States, a judgment is renewable for additional time. One of the elements that make judgments an attractive investment tool is that most jurisdictions apply statutory interest ranging between 5 and 12%. That means that while the face of the judgment will not change, the law will permit creditors to seize far more than original judgment award before the judgment is deemed satisfied.
