There are situations where both sides to a debt agree on money being owed. The question is: how to document and collect it?
A confession of judgment is a very useful, but particular instrument used to document debt and repayment. In a nutshell, if your debtor in Duluth agrees to repay you in Hugo a certain full amount with payments, you recite the same in the Confession. Upon a breach of the Confession, the creditor is authorized to file the Confession with an acknowledgment. That confession then becomes a judgment and various tools of collection become available. It allows you to bypass litigation, dispute over the amount owed, and other steps in order to skip directly to a docketed judgment and collection.
One very important, required clause in your Confession is “a statement, signed and verified by the defendant, authorizing the entry of judgment for a specified sum.” Even if you do everything else right, if you do not have this clause your Confession is invalid and you will not be granted a judgment.
Keep this in mind as a tool for efficient documentation of debts owed. There are other important clauses and clarity in the writing of the details is critical. I have prepared and litigated these documents, as well as successfully used them for collection. If you have questions, reach out and let's talk.