Bisno v. Kahn, No. A133537 (D1d3 Apr, 25, 2014)
The court holds that it doesn’t violate California's usury laws for a creditor to enter into a contract with a debtor to forebear on collecting on a judgment, even if the forbearance contract includes interest well over and above the statutory 10 percent that applies to unpaid judgments. That said, the court holds that the forbearance contract is not part of the judgment. So the debtor can satisfy the judgment without paying off the contract, which would have to be enforced in a separate action where the debtor would get a chance to raise defenses like unconscionability and economic duress.
Affirmed.
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