Cognovit Cases

karthikeyamurugesan · Joined: 18 Jul 2007 Posts: 9 4.50 Dollars($)

Can any one Explain about Cognovit Cases?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

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

Niicss · Joined: 03 Oct 2005 Posts: 1018 151.63 Dollars($)

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

blue · Posted: Wed Aug 15, 2007 1:28 pm Post subject:

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

larry · Joined: 27 Jun 2007 Posts: 3245 460.30 Dollars($)

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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