Renewal of a Judgment
It is possible that a judgment will still be unpaid after five years. A creditor can renew the judgment by serving on the debtor and filing with the clerk a form called an application for renewal of judgment. A creditor must wait at least five years (but never more than 10) before renewing otherwise the judgment will automatically expire at the end of 10 years, after it was awarded. As soon as the judgment is renewed, interest accrues on the entire judgment, including accumulated interest and costs, at the rate of 10 percent per year.
Satisfaction of Judgment
Upon full payment of the judgment, the creditor must file a satisfaction of judgment with the county recorder’s office(s) releasing any liens recorded. This satisfaction of judgment must be filed after full payment is received and after written demand by the judgment debtor. Any creditor who fails to file an acknowledgment of satisfaction of judgment” with the court is liable to the debtor for all damages sustained by reason of such failure, such as losses resulting from the other person’s inability to obtain credit (if the judgment against the debtor was recorded on his or her credit record). Once a creditor signs an acknowledgment of satisfaction of judgment form, he/she gives up your right to collect anything more on the judgment.
There is an exception, where a real estate escrow or title insurance company may request a signed acknowledgment form in advance, with the clear agreement and understanding that the escrow or title insurance company will pay the entire unpaid judgment (including all accrued interest and court costs) from the proceeds of a sale of the debtor’s property.
