Bill > H515

This bill establishes the North Carolina Economic Abuse Prevention Act, which provides legal protections for victims of domestic violence who have been forced or coerced into incurring debt by their abusers. The bill defines "coerced debt" as debt incurred through duress, intimidation, threat of force, or undue influence, and creates a comprehensive framework for victims to dispute and potentially eliminate such debt. Victims can provide "adequate documentation" from sources like police reports, court orders, or certifications from qualified professionals to prove the debt was coerced. When a victim submits such documentation, debt collectors must cease collection activities and review the claim. If a court determines the debt is coerced, the victim can receive a declaratory judgment releasing them from liability, and the court may even issue a judgment against the person who coerced the debt. The bill also protects victims by allowing courts to seal records and redact personal information to prevent further potential abuse. Importantly, the law does not apply to secured debt or debts that have already been reduced to a court judgment, and it becomes effective on July 1, 2025, applying to debts incurred or actions filed on or after that date. The legislation aims to provide survivors of domestic violence with multiple pathways to remedy coerced debt and repair their credit reports.

Budget and Finance, Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/H515