On January 1, 2025, a new law, known as An Act Concerning Coerced Debt, took effect in Connecticut. The law is aimed at protecting victims of domestic violence, who were coerced into incurring debt, and offers an avenue to hold the perpetrator civilly liable for the amount of the debt, as well as the debtor’s legal fees and cost incurred. The remedies available to victims, under this law, may expand what is available by way of a divorce or separation.
Here’s what you need to know about this important new law:
Key Provisions of An Act Concerning Coerced Debt
1. What is Coerced Debt? Coerced debt refers to any debt that a victim of domestic violence was forced to incur by “duress, intimidation, threat of force, force or undue influence.” The definition of domestic violence in Connecticut includes physical abuse, stalking, threatening and coercive control, so it is important to speak with an attorney to understand how the act applies to your situation.
2. Civil Liability for Perpetrator: The law prohibits an individual from coercing another person into incurring debt. If that individual is found liable under this Act, they can be required to not only repay the debt, but the debtor’s legal fees and costs incurred, as well.
3. Protection Against Debt Collection: The Act also allows debtors to halt collection actions while a claim of coerced debt is being investigated. This provides a debtor with much needed while a claim is reviewed. Contact an attorney to determine the best evidence of domestic violence, including police reports or restraining orders, necessary to submit a claim.
4. Available Remedies: The Act offer additional remedies to a debtor, such as prohibiting the debt claimant from initiating legal action to collect the debt and removal and/or notification to a credit agency about negative information on a debtor’s credit report. However, it is important to note that a debtor may only seek relief under the Act one time for all or part of the same debt.
This Act can offer significant help to victims of domestic violence by resolving debt issues in a potential divorce or providing a defense to ongoing debt collection. It provides an opportunity for individuals to reclaim financial stability and start anew. If you think you’ve been coerced into taking on debt, consult with one of our attorneys to understand how the law may apply to your specific situation.
Karissa Parker-Geisler represents clients in the negotiation and litigation of all facets of family law including divorce, custody including alimony, child support, property division, post-judgment matters, and pre-nuptial agreements. You can reach Karissa at karissa@scklawct.com
