Bill > A07545

This bill amends the New York Civil Practice Law and Rules to restrict judgments by confession, which are legal procedures that allow a creditor to obtain a court judgment against a debtor without a traditional lawsuit. Specifically, the bill prohibits entering judgments by confession in two key scenarios: first, for any amount owed by individuals for personal, family, household, consumer, or non-business purposes, and second, for any debt with a principal amount less than $5 million at the time it was incurred. These restrictions are designed to protect consumers and smaller debtors from potentially rapid and uncontested legal judgments. The bill modifies existing law by removing certain language about interest rates for consumer debt and adding new limitations on when judgments by confession can be used. The changes will apply to any judgments by confession filed on or after the bill's effective date, which is immediate upon passage. The overall aim appears to be preventing creditors from using judgments by confession as a quick mechanism to collect debts, particularly from individual consumers or for smaller debt amounts.

Justice

https://www.nysenate.gov/legislation/bills/2025/A7545