MCA debt relief and a confession of judgment

MCA debt relief and a confession of judgment depend on the state where the case would be filed. A confession of judgment is a paper that lets a creditor enter a judgment without a full lawsuit. Merchant cash advance contracts have used that clause.

Texas and Florida

Texas Finance Code 398.055 says a commercial sales-based financing contract that contains a confession of judgment provision, or any similar provision, is void and unenforceable. That chapter took effect September 1, 2025.

Florida Statute 55.05 says all powers of attorney for confessing judgment, made before the action is brought, are absolutely null and void. Tallahassee keeps that statute next to Florida's commercial financing disclosure law.

New York and California

New York CPLR 3218 still sets out how a judgment by confession may be entered. We do not treat that section as a ban. California has no statewide ban we could source on this pass. If someone hands you that clause in California, we do not have a statute page that answers it.

What to do with the paper

Do not sign a new confession of judgment on a sales call. What to do when merchant cash advances take a daily debit is the order. How to check an MCA relief company is the checklist if a firm asks you to sign one as part of the relief work.