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karthikeyamurugesan

Joined: 18 Jul 2007
Posts: 9
4.50 Dollars($)
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Posted: Wed Aug 08, 2007 6:46 am Post subject: Cognovit Cases |
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| Can any one Explain about Cognovit Cases? |
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miller_st

Joined: 17 Jan 2007
Posts: 917
168.92 Dollars($)
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Posted: Wed Aug 08, 2007 11:06 am Post subject: |
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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 |
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Niicss

Joined: 03 Oct 2005
Posts: 2620 Location: New Jersey
409.63 Dollars($)
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blue

Joined: 21 Oct 2005
Posts: 1138 Location: MARYLAND
137.84 Dollars($)
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larry

Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Posted: Wed Aug 15, 2007 10:56 pm Post subject: |
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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? |
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