Section § 8.01-432 similarly says, “Any person being indebted to another person, or any attorney-in-fact pursuant to a power of attorney, may at any time confess judgment in the clerk's office of any circuit court in this Commonwealth, whether a suit, motion or action be pending therefor or not, for only such principal and interest as his creditor may be willing to accept a judgment for, which judgment, when so confessed, shall be forthwith entered of record by the clerk in whose office it is confessed, in the proper order book of his court. The same shall be entered of record by the clerk in the order book and be as final and as valid as if entered in court on the day of such confession.” Section § 8.01-431 says, “In any suit a defendant may, whether the suit is on the court docket or not, confess a judgment in the clerk's office for so much principal and interest as the plaintiff may be willing to accept a judgment or decree for. We offer this discussion for general information purposes only. We will quickly describe the process although we remind readers that this summary is no substitute for consulting with a lawyer.
These rules can be found in Chapter 17 of Title 8, the state’s Civil Remedies code. The Virginia Legislature established a comprehensive scheme regulating confessions of judgment. Virginia Statutes and Confessions of Judgment
Virginia has its own statutory language, more on that below. Because their treatment varies widely from state to state this post discusses the Virginia confession of judgment process only.Ī typical confession will have language that says, "The undersigned irrevocably authorizes any attorney to appear in any court of competent jurisdiction and confess a judgment without process in favor of the creditor for such amount as may then appear unpaid hereon, and to consent to immediate execution upon such judgment." That means the debtor is appointing the lender in advance to obtain a judgment by just filing the confession with the court. We have encountered them in New Jersey (where they are disfavored by the court), Pennsylvania, California and Michigan. In this post we discuss the Virginia confession of judgment process but the remedy is not exclusive to the Old Dominion state. This makes the confession of judgment an extraordinary remedy.
As a practical matter, when a default occurs, the creditor can obtain a judgment without advance notice to the debtor (borrower) and without filing a lawsuit or appearing before a judge. These provisions allow the debtor to appoint the creditor as his or her agent and appear before a court and confess judgment in the event of default. If a confession of judgment sounds ominous, it is.
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