What a Confession of Judgment Is
A confession of judgment is a written acknowledgment, signed in advance, that authorizes a creditor to enter a judgment without filing and prosecuting an ordinary lawsuit. When enforceable, it can allow a judgment to be entered by the court relatively quickly after a default. The clause effectively waives the right to be sued and to defend in court before a judgment is entered.
Because a COJ can result in a judgment without prior notice or a hearing, it is one of the more consequential provisions that may appear in an MCA agreement. Business owners who signed an agreement containing a COJ may not realize its significance until a judgment is entered.
Where Confessions of Judgment Are Limited
The enforceability of COJ clauses varies significantly. Some jurisdictions restrict or prohibit confessions of judgment in commercial contexts, or limit them based on where the debtor is located, where the confession was signed, or the nature of the transaction. Recent regulatory and legislative attention has narrowed the circumstances in which COJs may be enforced.
Whether a particular COJ is enforceable depends on jurisdiction-specific law and the specific facts. This website does not opine on whether any specific COJ is enforceable. Business owners concerned about a COJ should consult qualified legal counsel.
If You Are Concerned About a COJ
If your MCA agreement contains a confession of judgment clause, or if a judgment has been entered through a COJ, qualified legal counsel may be able to review the agreement, the jurisdictional issues, and potential responses. Because a judgment entered via COJ can lead to enforcement actions such as levies, acting promptly may be important.
This website is educational and is not a law firm. Submitting your situation does not create an attorney-client relationship. Where appropriate, users may be connected with independent legal counsel through a separate engagement.
Key Distinctions
A pre-signed authorization allowing a creditor to enter judgment without a trial or notice.
A court order establishing an enforceable debt — which a COJ may produce without ordinary litigation.
A formal court action with notice and an opportunity to defend; a COJ is designed to bypass this.
Key Takeaways
- 01A confession of judgment clause can allow a judgment without a trial or notice.
- 02COJ enforceability varies by jurisdiction and circumstances.
- 03A COJ is distinct from an ordinary lawsuit and from a mere default.
- 04If a COJ concerns you or a judgment has been entered, consider consulting qualified counsel promptly.
Not a law firm. MCA Debt Attorney and MYMCAOPTIONS LLC are not law firms and do not provide legal advice. Submitting your situation through this website does not create an attorney-client relationship. Where appropriate, users may be connected with independent legal counsel through a separate engagement.