Confession of Judgement (and should I sign)

[sweetnsas]

What is the name of your state? North Carolina

I was served back in November for a old cc bill. I answered the complaint and the only thing I admitted was that I had a cc with the company but I disputed the amount.

I received a confession of judgement and am wondering if I should sign it. They have given me 15 days to get it back to them.

I don't have documentation that says I don't owe what they say I owe but I don't want to let them get a summary judgement (which will be the next step).

Thanks for the help in advance.

[Debt Guy]

I am not real familiar with procedures in NC.

My first question is whether or not the debt is within the statute of limitations. NC has the shortest SOL in the country at 3 years. The statute begins to run from the date of first default. DOFD is generally 30 days after your last payment.

If the debt is OOS, then you need to figure out if you can amend your answer. If the debt is not OOS, there is no opportunity for you in that direction.

Personally, I think your defense is a weak one. Essentially, you have admitted you owe money but want to quibble over how much money you owe.

The creditor is asking you to confess to the judgment. This is a good decision if the amount you are agreeing to is "fair and agreeable" to you and if that amount is less that what it would be if you go all the way through the legal process.

It is typical in this situation for the creditor to also agree to a monthly payment plan for the amount agreed

So, whether or not to accept the deal depends on how you judge your chances getting stuck with a much larger judgment and how adverse you are to this thing hanging over you head for a very long time.

But, before you do anything, figure out the SOL question.

Final thought, in case you are not award, wages cannot be garnished in NC.

[sweetnsas]

Debt Guy - thanks for the quick reply.

It's definitely within the SOL - that's the first thing I checked when I got the summons.

I'm not sure if I have time to amend my answer - I'm pretty much down to the wire.

I was not aware that wages couldn't be garnished in NC and am not in a position to get an attorney to argue the case in court.

They've stated that they would accept a payment arrangement if I sign the confession.

From my understanding, they can still file the judgement in court and it be on my credit report with the confession - it is at their discrection. So I'm wondering what real advantage is it for me to sign the confession.

[Debt Guy]

So I'm wondering what real advantage is it for me to sign the confession.

Potentially two reasons:

1. The confessed judgment total might be less that the awarded judgment -- sometimes they will forgo the attorney fees. You'll have to ask.

2. The payment plan. They are not obligated to give you a payment plan. So, it is possible that if you refuse to sign the agreement, they might just tell you to eat dirt. You don't know.

Now, you can try to negotiate for the best deal.

Try to get them to agree to not file the judgment unless you default on the payment plan. If that does not work, see if you can get them to agree to vacate the judgment after you have paid off the payment plan.

When I was a young banker, I had a wizened old lawyer tell me, "Son, if it ain't in writing then it never happened."

What ever deal you agree to, get it in writing.