Confession of Judgment: What You Need to Know
The clause that lets a creditor get a judgment without a lawsuit — and how to fight it.
What is a confession of judgment?
A confession of judgment is a clause — common in Pennsylvania commercial loans, leases, and guaranties — in which the debtor agrees in advance that, if it defaults, the creditor can go straight to court and have a judgment entered against it without first filing a lawsuit or holding a trial. It is a powerful creditor remedy.
Why it's so powerful — and used in commercial deals
Because the debtor has already consented, the creditor can obtain a judgment quickly and move to collect — freezing accounts or placing liens — before the debtor has its day in court. Pennsylvania allows these clauses in commercial contracts (with limits), which is why they appear in so many commercial leases and notes.
How a debtor fights back
A confessed judgment is not the end of the road. A debtor can move to strike the judgment (for a defect in the confession) or to open it (to assert a defense on the merits), and courts will scrutinize whether the clause and the amount were proper. Acting fast is critical, because collection can begin immediately.
How Nochumson P.C. helps
Nochumson P.C. enters and defends against confessed judgments for creditors and debtors. Contact us if a judgment was confessed against you.
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