Bill > S650

This bill establishes the North Carolina Coerced Debt Relief Act, which provides legal protections for survivors of domestic violence who have been forced to incur debt through duress, intimidation, or undue influence. The bill defines "coerced debt" as financial obligations incurred by victims of domestic violence or individuals in foster care that were created through force or threats. It requires creditors to pause collection activities when a debtor provides adequate documentation proving the debt was coerced, such as police reports, court orders, or sworn certifications from qualified professionals like counselors, therapists, or social workers. If a court determines that a debt is indeed coerced, the debtor can receive a declaratory judgment releasing them from liability for that specific debt. The bill also allows victims to seek legal remedies against the person who coerced the debt, with the court taking steps to protect the victim's safety during proceedings. Notably, the law will only apply to debts incurred on or after July 1, 2025, though victims can file cross-complaints for debts incurred before that date if no final judgment has been entered. The legislation aims to provide economic relief and protection for domestic violence survivors who have been financially manipulated or abused.

https://www.ncleg.gov/BillLookUp/2025/S650