Confession of Judgment

A confession of judgment is a legal document in which a debtor voluntarily admits liability and agrees to a judgment against them without the need for a trial. The document typically includes the debtor’s acknowledgment of the debt, the amount owed, and the terms of repayment. It may also include a waiver of the debtor’s right to contest the judgment or to receive further notice of legal proceedings. Confessions of judgment are often used in commercial lending transactions, such as promissory notes or guarantees, to streamline the collection process and minimize the risks of default. They are also used in settlement agreements to resolve legal disputes without the need for further litigation. Once a confession of judgment is signed and filed with the court, it becomes a binding legal judgment that can be enforced through various means, such as wage garnishment, property liens, or bank account seizures. Confessions of judgment are subject to strict legal requirements and may be challenged or vacated under certain circumstances, such as duress, fraud, or lack of proper notice.