What is the standard default post-judgement interest rate?

Prepare for the New Brunswick Bar Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The standard default post-judgment interest rate is set at 7%. This rate applies to judgments in civil proceedings unless a different rate is specified by statute or the court. The rationale for establishing a specific interest rate is to compensate the judgment creditor for the time value of money, ensuring they receive a fair return for the period they are deprived of the funds awarded to them by the court.

This 7% rate is also intended to provide a balance between adequately compensating the creditor while not imposing an excessively high burden on debtors. It reflects a generally accepted interest level within the broader economic context and aligns with common legal standards.

Understanding this standard is crucial for both legal practitioners and their clients, as it directly influences financial calculations related to judgments and can impact negotiations in settlement discussions.

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