Cognovit Cases

Hi Karthikeyamurugesan,

Cognovit note is called an extraordinary document which the creditor can ask borrower to sign at the time credit is extended to borrower. Using this note the borrower authorizes his creditor's attorney to place a confession in court using which creditor will be able to get a judgment against him.

In a situation where the borrower is unable to pay & the loan is in default, because of this cognovit note the creditor will be able to obtain a judgment against him without notifying him.

After the judgment is granted to creditor, borrower is not in a position to do anything against the judgment. Such notes are not considered as illegal by Supreme Court but their use has been outlawed in most states in consumer transactions.

Miller

You can read more on this topic from here : http://law.jrank.org/pages/5340/Cognovit-Note.html

If you happen to live in Indiana then you should know that cognovit notes are prohibited in Indiana.

Ind. Code 34-54-4-1 : http://www.in.gov/legislative/ic/code/title34/ar54/ch4.html

Thanks
Blue

Hi Karthikeyamurugesan,

A cognovit note is a kind of promissory note in which the borrower confesses his debt. It also authorizes to pass a judgment against him without any notice from the court provided he is not able to make payments for all his debts as agreed in the note.

Please let me know why you want to know of this type of deed. Are you facing any problem?

Is it colectable if debtors are deceased

Hi Jerry,

The deceased person's estate will be liable to pay off the debts to his or her creditors.

Thanks

are there any cases of cognovit note in colorado

As far as I know, cognovit notes are prohibited in Colorado. Have a word with your attorney and he will better guide you in this matter.