New York’s New Coerced Debt Law will Be Transformative For Survivors of Financial Abuse

Financial abuse, sometimes referred to as Economic Abuse, is an under-discussed but deeply pervasive issue where an abuser restricts the economic access and independence of a survivor. 99% of domestic violence survivors report experiencing financial abuse, and almost every client we work with at DVP has experienced it themselves. 

Despite its prevalence, lawmakers had often failed to adequately respond to how abusers weaponize this tactic. But just this past month, advocates achieved a major breakthrough for survivors of financial abuse. With the passage of the New York State Coerced Debt Law, we mark a huge step forward for survivor justice in New York, one that is sure to have life-changing impacts on survivors for years to come. 

What is Coerced Debt?

Coerced debt is when an abuser uses threats, violence, or manipulation to force a partner into taking on debt. According to a study from 2014, over half of all callers to the National Domestic Violence Hotline reported suffering coerced debt. 

Abusers use this tactic to trap survivors in abusive relationships by destroying their credit rating, limiting their ability to find housing or employment, and/or forcing them to rely on the abuser to afford basic necessities. Often, an abuser keeps information about the debt hidden, including how much is owed and when it needs to be repaid, intentionally worsening the debt ramifications. 

It’s one of the most common types of financial abuse that we see at DVP, with survivors forced to shoulder massive financial burdens that they were not aware of or pressured into. But for years, our legal infrastructure left survivors without a way to get free from this crushing debt—a constant reminder of the pain they went through and a direct impediment to their freedom. Because these impacts are so inhibitive, it’s long been clear that we need tailored options for coerced debt relief. 

A Victory for Financial Abuse Survivors in New York

For years, advocates for survivors of domestic violence have been extremely vocal about the need for specific legal and social supports that address coerced debt. In New York, the Economic Justice for Survivors Collective—a coalition of advocates & attorneys that includes DVP— has led the charge for coerced debt legislation, speaking directly with survivors of financial abuse, writing and rewriting the policy, and sitting down with lawmakers to emphasize the urgency of the issue. And on March 18, we won a major victory in this fight when Governor Hochul signed the Coerced Debt bill into law. 

Effective September 14, 2026, when a survivor reports coerced debt and submits adequate documentation, creditors must halt collections and scrub the adverse information from the survivor’s record. This protective policy extends to survivors of DV/IPV, trafficking, elder abuse, caregiver abuse, and child abuse, seeking relief from coerced consumer debt. 

This remedy will be transformative for survivors living under the weight of a debt they did not consensually incur. When survivors overcome coerced debt, they can put their hard-earned dollars toward food, education, housing, and the other necessities that give them true independence and well-being. 

Building Lives Free from Financial Abuse

This victory is the result of years of advocacy.  The new law is not only a sign of progress for survivor safety but a true testament to the power of working in coalition and centering survivor voices. 

At DVP, we know that addressing domestic violence demands more than just strong emergency response systems. Intimate partner violence does not start at the moment of escalation; it is a complex, deeply rooted social issue with many distinct impacts on survivors. Financial independence, including the ability to offload an abuser’s debt, is often the difference between a survivor being trapped and being free. By passing the Coerced Debt Law, we take a critical step toward building a world of access in which survivors have the resources they need to truly be free.

Learn more about how you can support survivors and their children to live free of violence and abuse.

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