AMENDMENTS REGARDING CONFESSION OF JUDGMENT

FOR MONEY AND REAL PROPERTY

There have been amendments to the Rules of Civil Procedure regarding Confession of Judgment that will affect some of the legal agreements that you may be signing. Under the former laws regarding confession of judgment a judgment could be entered against you upon your default under the contract in a court of law based on your mere signing of a legal agreement that contained an explicit confession of judgment clause in it. Also, there was no limitation as to whom a confession of judgment could be applied and there was a blanket waiver of any notice to the person the confession of judgment was to be entered against.

The amendments to the Rules of Civil Procedure regarding Confession of Judgment for money became effective April 1, 2025 for all actions commenced thereafter. The new amendments abolished confession of judgment in connection with consumer credit transactions which are defined as those "credit transactions in which a party to whom credit is offered or extended is a natural person and the money, property or service which are the subject of the transaction are primarily for personal, family or household purposes." In non-consumer transactions notice prior to, or with, the execution upon a confessed judgment is now required. Upon service of the notice, the defendant now has thirty days in which to file a petition to obtain relief or is barred from relief absent "compelling reasons for the delay."

The revisions to the Rules of Civil Procedure for the confession of judgment in ejectment for possession of real property became effective July 1, 1996. The first revision abolishes confession of judgment for the possession of real property in connection with a residential lease executed by a natural person. The second set of revisions provides for notice requirements which are consistent with the notice provisions referenced above in regard to the confession of judgment for money.