Legal Question in Business Law in Oregon
Confession of Judgment
We have a small Sub �S� Corp that has some outstanding liabilities to one company. We do not have the money to pay and it is doubtful we will. We have been asked to sign a �Confession of Judgment� by the creditor regarding the liabilities, interest, and attorney�s fees. Even if we do sign, we still don�t have the money to pay so I assume the next step would be to put a lien on the company and assets (which there are very little). Now to the question: If we sign the Confession, do we run a higher risk that this creditor can pierce the corporate veil down the road (assuming we can�t pay what the company owes).
1 Answer from Attorneys
Re: Confession of Judgment
You may. It depends on the case and how it was filed. Do the confessions of judgment name the officers or directors of the corporation? If so, then the creditor simply goes after the officers or directors.
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