Bill > S02305

This bill amends the New York Civil Practice Law and Rules to restrict the use of judgments by confession, which are a legal mechanism allowing a creditor to obtain a court judgment against a debtor without a traditional court hearing. Specifically, the bill prohibits entering judgments by confession for two key categories: (1) personal, family, household, consumer, or other non-business debts, and (2) any debt with a principal amount less than $5 million. The bill modifies the existing legal requirements for affidavits used in judgments by confession, removing some previous language about interest rates for consumer debt and adding new restrictions on when such judgments can be entered. The changes aim to provide additional protections for individual debtors by limiting the circumstances under which a creditor can quickly obtain a judgment without a formal legal proceeding. The bill will take effect immediately and apply to judgments by confession filed on or after its effective date.

Justice

https://www.nysenate.gov/legislation/bills/2025/S2305