By Guy Page

A bill now before the House Committee on Commerce and Economic Development would allow victims of domestic abuse to void debts they were coerced into taking on during abusive relationships.

H.385, sponsored by Rep. Edye Graning (D-Jericho), seeks to establish a legal process for survivors to have “coerced debt” declared unenforceable. Supporters say the measure recognizes that financial abuse is a common tactic used by abusers to maintain control.

At a press conference Thursday at the Vermont State House, a spokesperson for Vermont Legal Aid said many domestic violence survivors are pressured or forced to take out loans, open credit cards, or sign financing agreements for the benefit of their abusers.

The pain of coerced debt can continue long after the abuse ends, an abuse survivor said at the press conference. 

“Leaving the relationship did not end the financial control,” Marie said. Vermont Legal Aid spokesperson described cases in which survivors were left with more than $20,000 in debt accumulated under coercion. 

Under H.385, a consumer who provides a statement of coerced debt along with “adequate documentation” to a creditor would trigger a streamlined process. Within 10 business days of receiving the documentation, the creditor would be required to:

Cease all attempts to collect the coerced debt.

Refrain from filing a lawsuit to collect the debt, or seek a continuance, abatement, or stay if a collection action is already underway, unless challenging whether the debt qualifies as coerced.

Stop any wage garnishment related to the debt.

Return payments already made by the debtor or collected through garnishment on the coerced debt.

Advocates say the bill balances the interests of survivors and creditors by requiring documentation and allowing creditors to challenge claims they believe are invalid.

A similar law addressing coerced debt has been enacted in seven other states, according to Vermont Legal Aid. Supporters argue the proposal would bring Vermont in line with those protections while imposing no additional taxpayer expense.

For more information on the problem of coerced debt, see a Jan. 15 study by the Vermont Department of Financial Regulation. 

2050 land conservation bill may get committee hearing – In other possible committee action, supporters of H.70, which would allow land enrolled in the current use program to count towards Vermont’s 50% conserved land by 2050 land use goals, say they are hopeful it will ‘come off the wall’ and get a committee vote.

Sponsor Rep. Rob North (R-Vergennes) said the committee leadership is open to a discussion and vote on the bill which, if enacted, would allow Vermont to reach conservation of 50% of total land area by 2050, a goal under current state law. Large portions of Vermont farm and forestland are enrolled in the current use program, which allows taxation at use value rather than development value but imposes conditions of use and sale of the property.