The creditor is allowed to take the judgment and record it as a lien on the debtor's property, or try to garnish the paycheck or bank account. Interest does accrue, usually at a rate provided by state law. The debtor gets to exert exemptions to protect some belongings. For $25,000, the debtor may need to seek bankruptcy protection.
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Yes, interest accrues at the rate of 10% per year. The debtor should pay the judgment if possible. If not, then consider bankruptcy if the debtor has any assets or a job, as the creditor can use different avenues to collect the judgment.
Interest continues to accrue at the "legal rate" of ten percent after the date of entry of judgment. The judgment debtor may continue to try to negotiate payment of a lesser amount in full satisfaction of the judgment, or can appeal if the time has not yet run.
The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.