Usually, yes, if your state permits it for your type of deal, the pieces are in order, it was filed in the correct county on time, and you validly waived your right to notice and hearing before the judgment was entered.
If you are not sure whether your state still allows COJs, start here: What is a Confession of Judgment and is it still legal?
What is needed for a confession of judgment to be valid?
The confession must comply with the specific requirements of the state. In New York, the confession is the debtor's own affidavit, which must comply with CPLR 3218, stating the sum, authorizing entry of judgment, stating the county where you reside, and (if money is due now) setting forth facts showing why that money is "justly due or to become due." In Pennsylvania, by contrast, it is a complaint the creditor files with the prothonotary, and under Rule 2952 it must include the signed instrument, must state that no prior judgment has been taken on it, and must contain an itemized computation of the amount due.
| State | Instrument to be filed | Some possible defects in the filing |
|---|
| New York | Debtor's affidavit, per CPLR 3218 | Wrong county, boilerplate instead of facts showing the debt is justly due, a sum larger than was due, or filing more than 3 years after signing |
| Pennsylvania | Creditor's complaint, per Rules 2951 and 2952 | No signed instrument attached, a computation not itemized or with charges the warrant did not authorize, or an instrument over 20 years old filed without leave of court |
| Ohio | Warrant of attorney, per R.C. 2323.13 | Signed after Jan. 1, 1974 without the conspicuous statutory warning, or used in a consumer transaction |
| Michigan | Authority to confess judgment, per MCL 600.2906 | Confession language was part of the contract, rather than a separate instrument |
Must a confession of judgment be filed in a particular county to be enforceable?
In New York and Ohio, the statute requires filing in a particular county. In New York, the debtor's affidavit must be filed with the clerk of the county where the debtor resided at the time of signing the affidavit or at the time of filing it. A business "resides" in any county where it has a place of business. So a confession filed in a county where you have no place of business likely has a defect. Ohio permits filing only in the county where the maker resides or signed it. Pennsylvania has no such restriction.
Can a confession of judgment be enforced in a state other than the state where it was confessed?
Some states make it easy. In Pennsylvania, a creditor who has a confessed judgment from New York can file an authenticated copy in any court of common pleas, with an affidavit stating that the judgment is "valid, enforceable and unsatisfied" (see 42 Pa.C.S. 4306). The clerk mails notice to the debtor, and the judgment creates a lien from the date of filing. You can then seek to reopen, vacate, or stay it as you could any Pennsylvania judgment.
Other states are not so cooperative. New York's statute for summarily registering out-of-state judgments expressly excludes judgments "by confession of judgment" (CPLR 5401). So a creditor holding a Pennsylvania confessed judgment must bring a full-blown action on it in New York. And New York's highest court has refused to give full faith and credit to Pennsylvania cognovit judgments (Atlas Credit Corp. v. Ezrine, 1969). A California court ordered an Illinois confessed judgment vacated for lack of notice and knowing waiver (Commercial Nat. Bank of Peoria v. Kermeen, 1990); it was for $34,625.52 on a preprinted bank note. In Tennessee, though, after two trips through the courts, the court of appeals gave full faith and credit to a New York confessed judgment (Capital Partners Network v. TNG Contractors, appeals decided Sept. 2018 and Nov. 2020). For more, see Can an out-of-state MCA funder use a confession of judgment against me?
Didn't I waive my right to due process when I signed the confession of judgment?
Arguably yes, but only if the waiver was "voluntary, knowing, and intelligently made." See D.H. Overmyer Co. v. Frick Co. (1972). The cognovit in Overmyer was upheld after an arm's length negotiation between two corporations represented by counsel, where the debtor received something in exchange (namely, more time). The Court there opined, however, that a case involving an adhesion contract, where the debtor received nothing in exchange for signing the cognovit, might be decided differently. Typical merchant cash advance confessions fit this second category, since they are signed on a preprinted form at funding and the debtor receives nothing specifically for the confession. Although New York and Pennsylvania courts generally enforce commercial confessions of judgment, this defense may work, particularly if the judgment is taken to a more restrictive state or the facts show you did not knowingly sign.
Even a good argument must be raised at the earliest possible moment. In Pennsylvania, for example, you only have 30 days after being served with notice to file one petition to strike or open under Rule 2959, and a defense left out of it may be waived. In New York, on the other hand, you generally have to file a separate lawsuit, not a motion in the original case. See, e.g., Oakshire Properties v. Argus Capital Funding (App. Div. 2024).
Frequently Asked Questions
Does a New York confession of judgment bind my personal guarantee if I didn't sign the affidavit?
Not through that affidavit. CPLR 3218(d) provides that where the debt was jointly owed, judgment can only be entered against the parties that confessed.
If I've only missed a few payments on my advance, can the funder still use the confession of judgment to get judgment for the entire balance?
In New York, judgment is entered for the entire amount you confessed to, but execution can only be taken for the amount already due, with further executions as more comes due. CPLR 3218(c).
Is there a time limit for how long my funder has to file the signed confession of judgment?
In New York, the confession of judgment affidavit must be filed within 3 years of it being signed. So an affidavit signed in 2022 and filed in 2026 is too late. But be careful: if you sign a new confession of judgment as part of a renewal or forbearance of your advance, the time starts running from the new one.
If I have a confessed judgment in New York, can it only be enforced for 3 years?
No. The three-year period in CPLR 3218(b) is how long the funder has to file the affidavit after signing. It is silent on how long the judgment, once entered, can be enforced.