Revises provisions relating to certain debt. (BDR 52-599)

Changed the creditor's obligation from an immediate duty to stop all collection efforts upon notice to establishing a legal defense in court.

Removed the requirement for creditors to return payments made via garnishment and the mandate to dismiss pending actions immediately.

Narrowed the application from general debt collection processes to specific civil actions filed to collect consumer debt.

Expanded the definition of 'coerced debt' to explicitly include human trafficking as a qualifying circumstance.

Updated the effective date of the act to October 1, 2025.

Updated the reprint date from May 19, 2025 to May 23, 2025 and changed the version label from SECOND REPRINT to THIRD REPRINT.

Minor formatting adjustments to the bill title and sponsor list spacing.

The Legislative Counsel's Digest was revised to add language about revising provisions governing the presumption of intent to defraud in the issuance of certain financial instruments.

Changed applicability from all consumer debts to specifically 'unsecured consumer debts'.

Added specific requirements for debtors to submit written attestations and supporting documentation (police reports, FTC reports, or protection orders) to assert the coerced debt defense.

Added provision allowing debtors to waive disclosure of coercer identity if disclosure would likely result in abuse to the debtor or family members.

Added court authority to order creditors to immediately cease collection efforts and correct credit reports when coerced debt is established.

Added ability for creditors to join third parties liable for the coerced debt or amend complaints to claim against them.

Added provision allowing debtors to recover attorney's fees and costs from the person who coerced the debt, not from the creditor.

Added specific definition of 'coerced debt' including fraud, duress, intimidation, and threats of force, with expanded categories of domestic violence perpetrators.