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Beware of the Confession of Judgment Clause: SBA loan default cases
(0) Comment |Unleash the Incredible Power of Confession of Judgment Clause in SBA Loan Default Cases: A Must-Know for Every Debtor
Are you drowning in an overwhelming SBA loan problem or struggling with a Treasury/Bureau of Fiscal Service debt issue that has been referred to a Private Collection Agency? Brace yourself for the shockingly powerful force of the confession of judgment clause. This potent weapon, embedded in some loan documents, grants the SBA and the Treasury Department the remarkable ability to secure a judgment against you without further notice or trial, particularly when either entity is your primary or assigned creditor.
Unlock the Mystery: What is Confession of Judgment?
The confession of judgment clause, nestled within the terms and conditions of your promissory note or other loan documents, asserts that if you default or fail to make payments as the debtor, you grant an attorney-in-fact the authority to appear in court and confess judgment. This paves the way for creditors to secure legal judgments against you for the full amount of principal, interest fees, and costs due.
Take careful note that the sample confession-of-judgment clause mentioned here stands as standard language featured in numerous promissory notes, guarantees, stipulations, and settlement agreements. However, this clause transforms into a statutory creature under relevant state law only when explicitly stated in a document signed by you, the debtor.
Discover the Mechanics: How Does it Work?
Once acquired through this swift roller-coaster process (judgment may be recorded on the very same day!), creditors can immediately dive into collection proceedings without the necessity for any written notice. No summons is required to be served on you; still, remain on high alert, as this exceptional remedy might fail to operate under certain circumstances that favor creditors.
Given the extraordinary nature of this remedydesigned for lenders to obtain repayment from borrowers who are delinquent on their loanscourts will scrutinize every single angle before granting judgments. If the documents containing these clauses do not explicitly grant authority to someone acting as your attorney-in-fact for initiating legal proceedings, judges will refuse to grant them!
In addition, consider the following factors:
1) Crystal Clear Liability: The document embedding the confession of judgment clause must convey the extent of your liability unambiguously. Courts frequently assert that a sweeping guaranteesuch as one referring to any and all debts, liabilities, and obligations of every nature or formis so vast that it becomes void.
2) Debtor’s Defense Opportunity: Some state laws provide you, the debtor, the chance to make a motion challenging judgments if you possess a valid affirmative defense(s). Seize the moment at the hearing to present your stance; if it appears a legitimate affirmative defense exists against the creditor’s claim, the court must set the matter for trial. This results in a delay of several months, with the tantalizing possibility of the judgment being vacated or overturned.
Why Entrust Your Financial Future to Our Esteemed Firm?
Our firm radiates expertise in assisting clients in resolving their SBA loan problems and Treasury/Bureau of Fiscal Service debt dilemmas. Through Offer in Compromise and Negotiated Repayment Agreements, we have navigated millions of dollars in SBA debts to resolution, all without our clients enduring the agony of bankruptcy or the heart-wrenching threat of home foreclosure. Moreover, we have victoriously defended millions of dollars in Treasury debts by skillfully handling AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers & Negotiated Repayment Agreements.
Our attorneys’ extraordinary scope of responsibilities is authorized by the Agency Practice Act, empowering them to represent federal debtors nationwide before the SBA Office Of Hearings And Appeals (OHA), The U.S Department Of The Treasury (DOT), Bureau Of Fiscal Service (BFS). Don’t wait another secondcall us today for a FREE initial consultation with our experienced attorneys at 888-756-9969! Allow us to meticulously analyze your situation and recommend potential remedies, such as an SBA offer-in-compromise for defaulting on loans from them. Embrace a brighter financial future with our unwavering guidance and support!