Saturday, October 24, 2009

What is the maximum amount of interest you can charge on an unpaid debt in Utah?

Someone vandalized my property and I got them to sign a police report admitting to it. We had our lawyer write up a contract of repayment that she signed. The lawyer didn't add to that contract any terms or consequences of her not paying which has happened. I wanted to know when I could start charging interest from and the maximum amount I could charge her.

Thanks
Answer:
Well if it isnt in the contract I am not certain that you can. But you may be able to charge an amount that is common.
If this falls into a small claims category ( which is up to 5k dollars I believe ) then I would take your letter in and get a judgement and state to the judge that you have already tried to settle the matter privately , showing them the letter of course and that you have not received payment.

Then of course that still does not force the person to pay you.
I would ask the judge at that time to give them a short amount of time to make payments and also include in the original amount the filing fee and interest, if he will grant it.

Then if they do not start paying you by the specified time file a writ of garnishment with the court and get the money garnished from them.
None hopefully. It is a sin to charge interest.
Take them to small claims court and get a judgment against them. Because you did not charge interest I don't think that you can now.

However, once you get a judgment against them signed by the judge you may get a writ of attachment against their wages. A very easy process, I do it all the time to people who owe and don't pay.

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