What Grounds Can a Borrower Raise to Set Aside a Confessed Judgment?

A borrower can move to set aside a confessed judgment by filing a motion with the Court within twenty-one (21) days after he has received proper notice that judgment has been entered. In order to set aside a confessed judgment, the borrower must set forth grounds that would have been an adequate defense or set off in an action at law.  Often, a borrower will raise defenses that allege: (1) a discrepancy in the amount owed; (2) ambiguity in the language of the promissory note; and/or (3) a procedural defect.  Since the procedural mechanism for obtaining a confession of judgment is strictly construed, the threshold for setting aside a confessed judgment is not particularly high.  In the event a confessed judgment is set aside, the Court will set the matter down for a trial on the merits.

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