A new law will compel creditors to recognize coerced debt if a survivor can provide proof such as a police report, a court order specifying financial abuse, identity theft report or letter from a professional such as a domestic violence advocate. Creditors can also seek repayment of the debt from the person responsible for it.
Research suggests financial abuse occurs in 99 percent of domestic violence cases. More than half of domestic violence survivors experience coerced or fraudulent debt of over $10,000 a year.