Coerced Debt Bill

The New York State Coerced Debt Bill (signed into law in December 2025 as S1353B/A3038B, also referred to in later amendments as A9460/S8830) is landmark legislation designed to protect survivors of domestic violence and economic abuse from being held liable for debt forced upon them by abusers. 

The law, which takes effect September 2026, prohibits creditors from enforcing consumer debt created through fraud, duress, intimidation, force, or the non-consensual use of a victim’s personal information. 

Key Features

• Definitions & Process: Covers consumer debts (loans, utilities) stemming from abuse, enabling victims to submit a “Notice of Coerced Debt” accompanied by “adequate documentation.”
• Creditor Obligations: Creditors must stop collection efforts within 30 days of receiving the notice and, if proven, ensure adverse information is removed from credit reports.
• Liability & Protection: The law places civil liability for the debt directly on the abuser, allows for “coerced debt” as an affirmative defense, and mandates safety measures like sealing records. 
• Definition & Documentation: Covers consumer debt from economic abuse, allowing victims to submit a “Notice of Coerced Debt” with proof, such as a police report, to creditors.
• Creditor Actions: Creditors must stop collection efforts within 30 business days upon notification.
• Credit Reporting & Liability: Mandates the removal of adverse information from credit reports and shifts civil liability for the debt to the abuser.
• Legal Protections: Establishes “coerced debt” as an affirmative defense in lawsuits and requires court measures to protect victim safety.