Q: I'm in NC. DO I have to sign a Confession of Judgment agreement with a bill collector? I have the debt & have agreed to

A: If you want to keep that particular settlement agreement and they require it, yes, you have to sign it to keep the settlement agreement. If you refuse, they will proceed with the court process and obtain a judgment against you. A Confession of Judgment is a better alternative than a Consent Judgment, because the Judgment will only be filed against you if you default on your payment plan. If you failed to answer the lawsuit at all, they will obtain a default judgment. If you did answer but you admitted the debt and pled financial hardship, they will proceed to obtain a judgment on the pleadings or a summary judgment. PLEASE talk to an attorney before you go through with this, especially if you have other defaulted debts that have not yet sued, so that you understand all of your options. There is no jail and no wage garnishment here if you do not agree to their terms. Contact a consumer bankruptcy attorney for the best advice. They will explain ALL options, because bankruptcy is not always the best option for your circumstances. Many consumer bankruptcy attorneys offer free consultations, which is the other reason why you should consult with one before agreeing to any payment plan with a debt collection lawyer, especially when it involves a confession of judgment.

A: No, you are not required to sign a Confession of Judgment. However, the creditor may require it as a condition to allowing you to make payments over a long term. Please contact an attorney discuss this issue before proceeding.