Any student of debtor creditor law learns very quickly that, except for a certain degree of protection under the bankruptcy code and state statutory exemptions, the creditor has numerous remedies available in the case of default. Mortgage, judgment, artisan and mechanics liens, secured transactions and various methods of execution and garnishment are all designed to ensure that property owned by a debtor may be used to aid the creditor in avoiding or minimizing a loss.
Arguably the most draconian tool is the confession of judgment codified in Pa R.C.P. 2950 et seq. (the act). In essence the debtor gives up every defense except the ability to strike and open the judgment. In homage to the spirit of consumer protectionism, the Pennsylvania General Assembly in 1996 amended the act to limit the use of confession of judgments to commercial transactions. The act, inter alia, even requires the creditor to certify that the transaction is not a consumer transaction.
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