Glossary
Confession of judgment
A clause allowing a judgment without the usual court process.
A confession of judgment (COJ) is a signed statement allowing a creditor to obtain a court judgment against you without a lawsuit if it claims default. It removes your chance to contest the claim first. Its enforceability and permitted use vary by state, and some states have restricted COJs in small-business financing. Never sign one you do not understand, and ask a lawyer.
How it appears in a contract
A separate affidavit or a clause titled "confession of judgment" or "cognovit"; may be filed in a specific state’s court.
Worked example
A missed week of debits could, under a COJ, become a filed judgment and frozen bank account before you have argued the facts.
Illustrative figures on stated assumptions; not quotes.
What to ask
- Is there a COJ or cognovit clause anywhere in the package?
- Which state’s courts would it be filed in?
- Will the provider remove it?
Related terms
Personal guarantee · Purchase of future receivables · UCC-1 · all terms
Educational definitions, not legal advice. Contract terms and their legal treatment vary by provider and state; read your agreement and ask a professional.
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