Judgment by confession (COJ) is a legal mechanism that allows parties in a civil case to resolve disputes without going through a lengthy trial. The defendant concedes liability and consents to the entry of judgment against them, which is known as a voluntary agreement.
COJ swiftly resolves various situations, including settling outstanding debts, claims for breach of contract, or disputes involving bodily harm.
Serve Index LLC is a reliable company offering New York court filing services. We focus our efforts on the intricate and subtle legal process of judgment by confession.
Judgment by Confession in the New York Civil Court
An initial filing may be required to establish a judgment based on the debtor’s written admission or confession. It’s important to ensure that the judgment amount does not exceed the monetary jurisdiction limits of the court.
Furthermore, filing this document with the court clerk within three (3) years from the date the defendant signs it is crucial. This timeframe is essential to preserve your rights and legal standing.
A judgment by confession may be entered under the following circumstances:
- For money due
- For money to become due
- To secure the plaintiff against a contingent liability on behalf of the defendant
A judgment of confession cannot be entered under the following circumstances:
- If it is based on an affidavit executed before a default occurred in the payment of personal goods (valued at $1500.00 or less) bought under an installment plan for non-commercial or non-business use, where the payment is to be made in two or more installments
- In cases where the defendant has passed away
To obtain a Judgment by Confession of Money Due, you must submit a properly executed Defendant’s Affidavit (a standard form can be used). The Defendant’s Affidavit for Judgment by Confession should include the following details:
- The exact amount eligible for judgment entry
- The county of residence of the defendant, or if the defendant is a non-resident, the authorized county for the entry
- Detailed information about the circumstances giving rise to the debt
- A statement confirming the amount confessed is currently due or will become due
- Clear facts establishing the defendant’s liability
- An affirmation that the confessed amount does not exceed the liability
Requirements for Confessions of Judgment in New York
In New York, a confession of judgment (COJ) must meet several details to be valid. The document must state the amount and the debtor’s liability. Additionally, the debtor must sign the confession, confirming they understand their obligations. That way, the legal actions match the confession.
Here’s a breakdown of the requirements to make things clearer.
Statement of Amount
The confession of judgment file must state the exact amount of the debt. It should be clearly specified, down to the last cent. Rounding off to the lower or larger amount is not recommended, as New York laws require the exact debt.
Underlying Facts
The COJ must state all the facts surrounding the debt. A concise explanation of the conditions and situations in which the debt arose is a must. This shows that both parties are aware of the facts and amounts that are due or soon to be due.
State or County of Residence
The COJ document must contain the defendant’s address or place of residence. This is important because the state’s laws apply to the case. So, the COJ must be authorized according to the laws of the defendant’s state or county; in this case, New York.
Signature and Notarization
The confession must be signed by the debtor and notarized to ensure the other party acknowledges the debt. The next step is to accept the conditions defined in the document, so it becomes legally enforceable.
Voluntary Confession
The debtor must confess voluntarily. The COJ document ensures that no one is being forced to confess the debt. The defendant is completely aware of what they’re doing throughout the whole process.
Contingent liability and entry of judgment may also be included to ensure all the facts are true and the confessed amount doesn’t exceed the liability amount. Also, the entry of judgment ensures the lender files the document with the court within three years, making it easy to collect the debt.
All these requirements are important for confessions of judgment in New York to become legal and enforceable. As a result, the damaged party gets justice without needing to file a lawsuit against the debtor.
Joint Debtors’ Confession
One or more debtors can confess a judgment for a joint debt that is currently due or will become due.
However, it is important to note that if all joint debtors do not participate in the confession, the judgment will only be entered against those who confessed. This judgment does not prevent further legal action against the other joint debtors for the same demand.
Additionally, there will be costs taxed at $15.00, in addition to any taxable disbursements in the action.
Process for COJ
The process of judgment by confession typically involves the following steps:
- Execution of a Written Agreement: The defendant must sign a written agreement, commonly referred to as a confession of judgment clause. This clause explicitly acknowledges the defendant’s liability and signifies their consent to the entry of judgment.
- Legal Representation: The defendant must have competent legal representation throughout the process. This ensures that their rights are fully protected and safeguarded.
- Notarization: To validate its authenticity, the confession of judgment clause must be duly notarized.
- Filing in the Appropriate Jurisdiction: The confession of judgment (COJ) must be filed in the designated court with proper jurisdiction over the respective legal matter. Serve Index LLC can handle the court filing process on your behalf. We will submit the COJ to the appropriate court within the required timeline.
- Serving the Defendant: Our process servers can also serve the defendant with the COJ, ensuring that all legal requirements are met. This step is crucial to ensure the defendant receives proper notice of the proceedings.
Limitations on Confessions of Judgment in New York
Confessions of judgment are often limited to the area where the debtor or both parties live. That may be a problem if this person moves to a different county or state. The confession validity period is also a potential risk.
Let’s see what other limitations may be included in the process.
Geographic Limitations
COJ must be filed in the county where the debtor resides or where their company or organization is based (in case a business is the debtor).
Out-of-State Debtors Excluded
Confessions of judgment against non-New York residents or businesses based in other counties or states are generally not enforceable. Exceptions are possible if the business has an office in New York responsible for financial transactions.
Time Limitations
COJs are only valid within three years of their signing. This prevents potential abuse, as the lender cannot pursue the debtor once the debt is paid off.
Prohibition on Consumer Debt
Confession of judgment in New York doesn’t apply to consumers’ debts. The law protects individual consumers from potential abuses in the future, and it’s the same in most US states and counties.
Notice Requirements
Defendants and authorities must notify the debtor. This makes the COJ process transparent and gives the debtor a chance to prove themselves right in specific cases.
Some legal processes favor the lenders, putting the debtors in a bad place. The limitations mentioned above are designed to protect the debtors, ensuring they’re treated fairly and equally under the law.
Note: Courts may ask for additional oversight, especially in cases of large amounts of money. The COJ document must follow specific language and formatting, so working with a lawyer is necessary. More importantly, debtors have a complete right to petition the COJ file, especially when they have evidence it was obtained under pressure or illegally.
Serve Index LLC will assist with Navigating the Complex Legal Landscape of Judgment by Confession
At Serve Index LLC, we take the guesswork out of filing confession judgments with the county clerk/court. We understand the sensitive nature of legal matters and ensure that all information remains confidential.
Contact us at 888-994-6339 to learn more about our services or request a quote.