Judgment interest start date: 7 rules by state and debt

Key takeaways

• Wisconsin allows interest on a liquidated claim from the time payment was due by the terms of the contract, according to Wisconsin State Legislature.
• In Washington, if a court affirms a judgment on a verdict on review, interest dates back to the date the verdict was rendered, as stated by Washington State Legislature.
• Michigan excludes interest on future damages for complaints filed on or after October 1, 1986, from the filing date to the judgment entry date, according to Michigan Legislature.
• Washington judgments for unpaid consumer debt bear interest from the date of entry at a rate of nine percent, according to Washington State Legislature.

Judgment interest start date: the short answer

The start date is not one fixed point across the country. Triggers differ—filing, verdict, entry, or contract due date—and the right one depends on where you would file and what the judgment covers. For Minnesota, the rule is clear: interest accrues on the unpaid balance of the judgment or award from the time it is entered or made until it is paid. Office of the Revisor of Statutes, Minnesota That entry-date trigger is one of the seven rules this post sorts out, and it applies to the unpaid balance during each calendar year.

Write down the state where you would file, the date of the invoice’s due date, and whether your contract states a rate, then match them to the row for your state in the reference table below.

Who the start-date rules cover and the exceptions

The rules above apply to money judgments recovered in civil actions, but specific debt types trigger different start dates or exemptions. In Michigan, interest is allowed on a money judgment recovered in a civil action, as provided in the statute Michigan Legislature. The statute also carves out specific scenarios where interest does not run from the filing date. For complaints filed on or after October 1, 1986, no interest is allowed on future damages before entry, meaning the clock for that portion of the judgment does not start until the court enters the judgment. This exclusion prevents interest from accruing on speculative or future losses during the litigation period.

In Minnesota, the accrual rule generally applies to the unpaid balance from the time the judgment is entered until it is paid, but a specific exemption exists for child support judgments. According to Office of the Revisor of Statutes, Minnesota, beginning August 1, 2022, interest shall not accrue on past, current, or future child support judgments. If your case involves a support order rather than a commercial invoice, confirm the debt is a child support judgment and check the period in which interest would accrue.

Write down the debt type in your judgment to confirm which exception, if any, applies to your start date.

Reference table: start dates by publisher

The table below lists the seven start-date rules and exceptions by state and debt type, with the publisher named in each row.

Match your invoice’s due date and contract terms to the row that applies to your filing state.

Michigan: filing date, future damages and older complaints

In Michigan, the filing date is the interest start point only for specific complaint periods and written-instrument cases. According to Michigan Legislature, for complaints filed on or after July 1, 2002, if a judgment is rendered on a written instrument evidencing indebtedness with a specified interest rate, interest is calculated from the date of filing the complaint to the date of satisfaction of the judgment at the rate specified in the instrument if the rate was legal at the time the instrument was executed. This rule applies specifically to written instruments that include a rate.

For complaints filed earlier, the calculation method changes based on the filing period. For a complaint filed on or after January 1, 1987, but before July 1, 2002, if a judgment is rendered on a written instrument, interest is calculated from the date of filing the complaint to the date of satisfaction of the judgment at the rate of 12% per year compounded annually, unless the instrument has a higher rate of interest. This 12% compounded annual rate also applies to complaints filed on or after June 1, 1980, but before January 1, 1987, unless the judgment is rendered on a written instrument having a higher rate of interest.

For the oldest complaints, filed before June 1, 1980, in an action involving other than a written instrument having a rate of interest exceeding 6% per year, the interest on the judgment is calculated from the date of filing the complaint to June 1, 1980, at the rate of 6% per year and on and after June 1, 1980, to the date of satisfaction of the judgment at the rate of 12% per year compounded annually.

There is a specific exclusion for future damages. However, for complaints filed on or after October 1, 1986, interest is not allowed on future damages from the date of filing the complaint to the date of entry of the judgment. This means that while the base judgment amount accrues interest from filing, the portion of the judgment designated as future damages does not accrue interest during the pre-entry period for complaints filed after that date.

Check your invoice contract for a specified interest rate and note the complaint filing date to determine which of these periods applies to your judgment.

Washington and Minnesota: verdict and entry dates

Washington and Minnesota handle judgment interest differently, particularly regarding when the clock starts and how specific debt types are treated. In Washington, if a court on review enters or affirms a judgment on a verdict, interest dates back to the verdict date Washington State Legislature. This relation-back rule applies when a judgment entered on a verdict is wholly or partly affirmed on review. For judgments involving unpaid consumer debt, the start date shifts to the date of entry, with interest bearing at a rate of nine percent Washington State Legislature. This consumer debt provision applies except as provided under subsection (1) of the same section. Additionally, prejudgment interest charged or collected on medical debt must not exceed nine percent Washington State Legislature.

In Minnesota, interest accrues on the unpaid balance of a judgment or award from the time it is entered or made until it is paid Office of the Revisor of Statutes, Minnesota. This accrual occurs during each calendar year at the annual rate provided in subdivision 1. The interest portion of a verdict or award is treated separately from the base amount, covering portions founded upon interest, costs, disbursements, attorney fees, or other similar items added by the court or arbitrator Office of the Revisor of Statutes, Minnesota.

The table below summarizes these start dates and rates for the specific judgment types covered by these statutes.

Check your invoice's due date and the state of filing to determine which of these start dates applies to your specific claim.

Wisconsin contract due dates

Wisconsin treats a creditor as entitled to interest on a liquidated claim from the time payment was due by the terms of the contract, according to Wisconsin State Legislature. If the contract does not specify a time for payment, the start point shifts to the time demand was made or from the commencement of the action. This rule applies specifically to liquidated claims, meaning the amount owed is fixed and determined by the contract terms. For an unpaid invoice where the due date is clearly stated in the agreement, the interest clock begins on that specific date, not when the lawsuit is filed or the judgment is entered. For setting that due date in billing software, see Invoice payment schedules: 4 tools for due date setup.

Virginia is a useful comparison for the rate itself. The legal rate of interest in Virginia is an annual rate of six percent, according to Virginia Law (Legislative Information System). The Wisconsin rule, by contrast, ties the start to the contract terms or demand.

Next step: if Wisconsin law may apply, write down your invoice’s due date today, since the contract’s due date is where that clock starts. For tracking what remains unpaid, see reconcile bank statements in software.

FAQ: interest start dates on an invoice judgment

What is the judgment interest start date on an unpaid invoice?

The start date varies by jurisdiction and the type of debt involved. In Wisconsin, a creditor is entitled to interest on a liquidated claim from the time payment was due by the terms of the contract Wisconsin State Legislature.

Does the Minnesota entry-date rule apply to my invoice judgment?

Yes, if your case is governed by Minnesota law, interest accrues on the unpaid balance of the judgment or award from the time that it is entered or made until it is paid Office of the Revisor of Statutes, Minnesota. The statute specifies this accrual occurs during each calendar year at the annual rate provided in subdivision 1.

Does interest run from the filing date in a Michigan judgment?

Yes, in some cases. For complaints filed on or after July 1, 2002, interest is calculated from the date of filing the complaint to the date of satisfaction of the judgment Michigan Legislature. This applies if a judgment is rendered on a written instrument evidencing indebtedness with a specified interest rate that was legal at the time the instrument was executed.

When does interest start on a Washington consumer debt judgment?

Judgments for unpaid consumer debt bear interest from the date of entry at a rate of nine percent Washington State Legislature. However, if a court is directed on review to enter judgment on a verdict, or a judgment entered on a verdict is wholly or partly affirmed on review, interest dates back to and accrues from the date the verdict was rendered.

Does Wisconsin allow interest from the contract due date?

Yes, a creditor is entitled to interest on a liquidated claim from the time payment was due by the terms of the contract Wisconsin State Legislature. If no time is specified in the contract, interest runs from the time demand was made or from commencement of the action.