New York Coerced Debt Law Goes into Effect June 17, 2026

New York’s Coerced Debt Law went into effect on June 17th, 2026. The coerced debt law applies to coerced debt incurred after June 17, 2026, by survivors of domestic violence, human trafficking, elder abuse, child abuse, and caregiver abuse. The new law establishes a procedure for survivors to notify a creditor that a debt was coerced and dispute it, requiring a creditor to conduct an investigation and pause collection activities. In addition, this law provides a defense in the event a creditor sues a survivor on a coerced debt. Please note that debts secured by real property are largely excluded from the coverage of this new law. In addition, debts secured by personal property, such as motor vehicles, are subject to a limited exemption. If you or a client believes they have a coerced debt (incurred after June 17, 2026), the first step is to contact the creditor and start the procedure to dispute the debt.