A confession of judgment is a legal document in which a debtor agrees to allow a creditor to obtain a judgment against them without going through a trial or hearing. In New York, a confession of judgment is a written agreement that a borrower signs, typically as part of a loan or credit agreement, in which they agree to waive their right to a trial or hearing and allow the lender to obtain a judgment against them in the event of a default.
The confession of judgment allows the creditor to obtain a judgment against the debtor immediately, without notice or an opportunity to defend themselves. Once the creditor has the judgment, they can use it to seize the debtor’s assets or garnish their wages to satisfy the debt.
Confessions of judgment are governed by strict legal requirements in New York, and creditors who violate these requirements can face significant penalties. It is important for debtors to seek legal advice before signing a confession of judgment to ensure that their rights are protected.
The CPLR (Civil Practice Law and Rules) is the set of laws and rules that govern civil litigation in New York State courts. In particular, Article 30 of the CPLR contains the provisions related to Confessions of Judgment.
Under CPLR 3218, a confession of judgment must be in writing and signed by the defendant, and it must include a statement of the amount owed and the terms of the confession. The confession must also include a statement that the defendant waives the right to notice of entry of judgment and the right to a trial or hearing.
Furthermore, CPLR 3219 provides that a judgment entered on a confession of judgment is considered to be final and conclusive, and it can be enforced in the same manner as any other judgment. However, there are certain requirements and limitations on the use of confessions of judgment under the CPLR, including the requirement that the confession must be filed with the court clerk and the prohibition against confessions of judgment in consumer credit transactions.
In summary, the CPLR provides the legal framework for confessions of judgment in New York State, and it sets forth the requirements and limitations that must be followed in order for a confession of judgment to be valid and enforceable.
