(1) After an action for the recovery of money is brought in a justice of the peace court, the defendant may offer to compromise or to confess judgment in the manner prescribed for, and with the same effect as he could or might do, in the circuit court, and shall be entitled to all the benefits to be derived therefrom to the same extent as on similar proceedings in the circuit court.
(2) The rules and proceedings governing confessions of judgment, as they may apply to the circuit courts, are made to apply to justice of the peace courts.