Confession of Judgment (COJ)
A document signed at funding in which the merchant admits liability in advance, allowing the funder to enter a court judgment on default without filing a lawsuit, without a hearing, and often without notice. It converts a payment dispute into an enforceable judgment almost overnight.
Why it matters
New York banned COJs against out-of-state debtors in 2019 and courts have vacated thousands entered with procedural defects, but they persist in other venues and older contracts. If your agreement contains one, treat any approaching default as a legal emergency and get counsel before a payment is missed.
