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A confession of judgment is a written agreement, signed by the defendant, that accepts the liability and amount of damages that was agreed on.Signing such a confession of forfeits any of the rights the defendant has to dispute the claim in the future.

United StatesConfessions of judgment are permitted in many states. New Jersey and Pennsylvania permit them, among others. Some states, including Michigan, require they be specially labelled or have other procedural requirements.

It can only be filed if your funder is unable to collect on your debt. If there's never a need to take collection action against you, a confession of judgment is simply an innocuous piece of paper. All that said, you should avoid signing one if you can possibly help it it's not worth risking your business' future.

In particular, confessions of judgment are only valid for three years after they are signed. Given how quickly a confession of judgment can be turned into an actual judgment, and the potential for abuse, the New York legislature has recently amended CPLR § 3218 further to restrict the use of confessions of judgment.

Confession Of Judgment Oregon

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