We used a previous blog post to discuss the different types of judgments above and beyond money judgments. One we did not get into is the confession judgment or, as it’s known in the state of Utah, a Judgment by Confession.
Not every state recognizes the confession judgment. In fact, some states that once recognized it actively eliminated it in the wake of the COVID pandemic. But the confession judgment is still recognized by Utah Code under Section 78, Chapter 23.
The Basic Structure
In describing the basic structure of the confession judgment, we will not get into all the details. We will stick with a general description. This is because other states that still recognize this particular form of judgment may administer it in different ways. It is best to just stick with general concepts and then leave it to readers to check the details in their respective states.
In a nutshell, a confession judgment is a legally recognized admission by the debtor that they owe the creditor. This form of judgment is fairly common in debt collection cases involving commercial parties. It may or may not be reached before an official lawsuit is filed.
Before a Lawsuit Is Filed
In some states, the confession judgment can be filed before a lawsuit is ever brought against the debtor. Along with the actual confession is a promissory note establishing the debtor’s voluntary agreement to pay what they owe. Some states even allow payment plans to be entered with the rest of the documents. Once entered, the confession judgment and all its stipulations become official and enforceable.
After a Lawsuit Is Filed
In other states it is more common to file a confession judgment only after a debt collection suit has been filed. In such cases, the point of the confession judgment is to avoid the time and expense of sitting through a trial. The confession judgment is a quick and easy way to settle a financial dispute without dragging things out before the court.
Key Things to Consider
Again, what we have described here is general in nature. There are some key things to consider with the confession judgment that may or may not apply to your circumstances:
- Use Cases – Typical use cases for the confession judgment include debt collection, particularly in the commercial arena. It is not unusual for such judgments to be attached to loan contracts or other business agreements.
- Legal Requirements – The states have different legal requirements when it comes to attorney declarations, judgment enforcement, and whether a confession judgment must be signed under oath.
- Legal Effect – A confession judgment typically has no legal effect until it is filed with a court. No enforcement actions can be taken against the debtor until the judgment is filed and recorded.
- Enforcement – Once filed and recorded, a confession judgment can be enforced like any other type of judgment. Creditors can use every legal means at their disposal to collect, including writs of execution.
As with anything else of this nature, always remember that the details differ based on jurisdiction. If your state recognizes the confession judgment, its details may vary considerably from what Utah regulations allow. There is also the possibility that your state does not recognize this form of judgment.
Regardless, there is no need for you to attempt judgment collection on your own. As experts in judgment collection, we can collect on your behalf. You can assign your judgment to us and then sit back while we handle things. We invite you to contact Judgment Collectors to learn more about our services.