Bill > HB313

This bill, titled the Civil Relief from Coerced Debt Act, establishes protections for individuals who incur debt due to circumstances like identity theft, fraud, domestic abuse, human trafficking, or other forms of coercion, excluding debt secured by real property. It defines "coerced debt" as debt incurred under such duress and outlines duties for both debtors and creditors. Debtors must submit a "statement of coerced debt" with supporting documentation, which can include police reports, court orders, or verification from qualified third parties like law enforcement or licensed professionals, to inform creditors that the debt is not their responsibility. Creditors are then required to suspend collection efforts, notify credit reporting agencies to remove negative information, and cease garnishments. The bill also specifies that creditors must provide clear instructions on how debtors can submit these statements and mandates the creation of a model form for this purpose. Importantly, perpetrators of coerced debt can be held civilly liable, and debtors have the right to use coerced debt as a defense in legal proceedings, with the creditor bearing the burden of proof if they dispute the claim. The act also includes provisions for protecting debtors from alleged perpetrators and outlines penalties for creditors who fail to comply with its requirements, emphasizing that any attempt to waive these rights is void.

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=313&year=26