Legal Question in Credit and Debt Law in Virginia

Cognovit/Confessed Judgement

Current Situation: A judgement was rendered to a creditor in a Virginia Landlord-Tenant case involving non-payment of rent. The debtors have offered to make a lump sum payment of 1/3 of the judgement and to sign a promissory note containing a confessed judgement clause for the balance. In return, the debtors are asking that the creditor notify the Virginia Court that the judgement has been satisfied. The creditor is a D.C. resident and wants to prepare the note so that it will be governed by the laws of the District of Columbia.

Issues/Questions: Is Due Process an issue? Are there jurisdictional concerns? What legal measures can the creditor take to protect his/her rights to collect the balance owed?


Asked on 7/10/99, 2:07 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Cognovit/Confessed Judgement

While the parties can agree to DC law, understand that confessed judgments are not generally enforceable in DC. If you are the creditor and want to do this deal, do it with a VA note. You must make sure that the formalities for a confessed judgment note are satisfied: a statutorily-required notice, specific persons as attorneys-in-fact, etc.

Note also that a confessed judgment note is still just that, a note, and not a judgment until it is entered as one. Which means that there is no judgment lien and no priority in the event of a bankruptcy. If you have a judgment, the best way to protect your rights is not to vacate the judgment.

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Answered on 7/14/99, 11:13 am


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