A bill in Montpelier aims to help survivors of domestic abuse move forward without a financial burden. Advocates said debt from a former partner can follow people for years.Supporters said coerced debt happens when someone is forced or manipulated into taking on financial obligations, through abuse or intimidation. For many survivors, leaving an abusive relationship can be the start of a stressful situation. “After I left, my former partner continued to pressure and intimidate me into paying his bills and taking on debt through coercion and fear,” said Katie Mackenzie, a Vermonter with lived experience. She said the financial control continued even after she left. “By the time it was over, I had been forced into more than $20,000 of debt. Much of it was while I was trying to rebuild a safe and stable life for my children,” Mackenzie added. At the State House on Thursday, lawmakers and advocates called for passage of House bill 385, an act aimed at addressing financial abuse. They said it can happen when a significant other uses force, threats, or fraud to open accounts or take out loans in someone else’s name. “Abuse used to control survivors, and to prevent them from seeking safety or independence. The consequences are long lasting,” said Representative Edye Graning. Supporters of the bill said the result can ruin credit, collections, and barriers to housing or employment.In Vermont’s tight housing market, advocates say damaged credit can make it even harder to find a safe place to live. “Advancing this bill is about recognizing financial abuse for what it is and removing one more barrier between survivors and the independence they deserve,” said Charlie Parker Gliserman, the director of policy for Vermont Network. House Bill 385 would create a legal process for survivors to challenge debt created through abuse. Supporters said it could offer a clearer path to relief for some. “While H385 cannot stop the underlying emotional and psychological trauma caused by abuse and exploitation, it would provide meaningful financial relief to survivors struggling to rebuild their lives,” said Grace B. Pazdan, the project director for Vermont Legal Aid. The bill is now moving forward in the house. If passed, Vermont would become the eighth state to adopt this type of debt relief protections.
A bill in Montpelier aims to help survivors of domestic abuse move forward without a financial burden. Advocates said debt from a former partner can follow people for years.
Supporters said coerced debt happens when someone is forced or manipulated into taking on financial obligations, through abuse or intimidation.
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For many survivors, leaving an abusive relationship can be the start of a stressful situation.
“After I left, my former partner continued to pressure and intimidate me into paying his bills and taking on debt through coercion and fear,” said Katie Mackenzie, a Vermonter with lived experience.
She said the financial control continued even after she left.
“By the time it was over, I had been forced into more than $20,000 of debt. Much of it was while I was trying to rebuild a safe and stable life for my children,” Mackenzie added.
At the State House on Thursday, lawmakers and advocates called for passage of House bill 385, an act aimed at addressing financial abuse. They said it can happen when a significant other uses force, threats, or fraud to open accounts or take out loans in someone else’s name.
“Abuse used to control survivors, and to prevent them from seeking safety or independence. The consequences are long lasting,” said Representative Edye Graning.
Supporters of the bill said the result can ruin credit, collections, and barriers to housing or employment.
In Vermont’s tight housing market, advocates say damaged credit can make it even harder to find a safe place to live.
“Advancing this bill is about recognizing financial abuse for what it is and removing one more barrier between survivors and the independence they deserve,” said Charlie Parker Gliserman, the director of policy for Vermont Network.
House Bill 385 would create a legal process for survivors to challenge debt created through abuse. Supporters said it could offer a clearer path to relief for some.
“While H385 cannot stop the underlying emotional and psychological trauma caused by abuse and exploitation, it would provide meaningful financial relief to survivors struggling to rebuild their lives,” said Grace B. Pazdan, the project director for Vermont Legal Aid.
The bill is now moving forward in the house. If passed, Vermont would become the eighth state to adopt this type of debt relief protections.
