In this video, you get answers to these questions:
- What do you do when you have to wait for a large sum of money?
- What is a promissory note and confession of judgment?
- How do you agree to extend payment terms with someone?
I’m Aaron Hall, an attorney in Minneapolis, Minnesota. Have you ever had this problem? Somebody owes you a large amount of money and instead of paying it timely, they’re asking you to make payments over a period of time and you’re worried that you have a right to all the money now and now they’re asking you for these payment terms. What are you getting in return for delaying payment? Well, a great way to address this is to ask for a promissory note with a confession of judgment, and that’s the key here. Usually, if somebody doesn’t pay you money that they owe you, then you have to sue them and that will cost, typically, thousands of dollars. It will take months, if not over a year. That’s a real problem.
However, if they sign a promissory note and a confession of judgment, then, assuming it’s written this way, if they don’t make the payments on time, instead of having to sue them, you can simply take that confession of judgment to the court house, record it, and you don’t have to sue them. You’re essentially getting the judgment, as long as you can demonstrate they didn’t pay on time. That’s the key issue there. This is incredibly powerful when you’re lending money, or when you’re agreeing to different payment terms than you originally agreed because you’re saving the time and money of having to sue somebody who owes you, in exchange for accepting their payment terms. So again, if you want to accomplish, this has to be done by an attorney. I’ve never seen free forms that make sense and accomplish this effectively, but you are asking the other party to sign a promissory note which explains when they will pay and how much, and sign a confession of judgment, and the promissory note says if the person doesn’t pay, then you can file the confession of judgment. It’s a powerful tool, if you agree to extend payment terms to somebody and you want to make sure you’re getting something in return so you don’t have to waste a lot of time and money suing them later.
To learn more, visit my website at aaronhall.com.