An Ill. bill passed in May aims to support survivors of domestic violence by preventing the collection of coerced debt
Content warning: This story contains references to domestic violence and physical abuse.
When a survivor of domestic violence escapes an abusive situation, their journey is only beginning. Physical and emotional impacts of trauma can stay with survivors for years as they recover, but another form of abuse can make it harder for survivors to leave in the first place: financial abuse.
Financial abuse occurs in 99% of domestic violence cases, according to the National Network to End Domestic Violence (NNEDV), which can take the form of an abuser controlling how money is spent, prohibiting or sabotaging work opportunities, hiding or stealing assets and various forms of coerced debt.
In partnership with Legal Action Chicago, NNEDV, a network of national and state coalitions against domestic violence, drafted an Illinois bill prohibiting the collection of coerced debt that state legislature on May 11. If signed by Gov. Pritzker, the law will go into effect Jan. 1 2026.
What is coerced debt?
Coerced debt, a form of financial abuse in which an abuser forcibly takes out credit or loans in someone else’s name without their knowledge or without their consent, can create economic barriers for survivors who want to leave.
The bill, HB 3352, defines coerced debt as “a debt incurred due to fraud, duress, intimidation, threat, force, coercion, undue influence, or non-consensual use of the debtor’s personal identifying information as a result of domestic abuse, sexual assault, exploitation, or human trafficking.”’
According to Maralea Negron, Director of Policy, Advocacy and Research at The Network: Advocating Against Domestic Violence, many survivors discover that their names have been used to take out loans or lines of credit when they’re seeking safe housing.
“Sometimes when they’ve made that decision to leave, they were saddled with debt they didn’t know about,” Negron said. “It comes up in interviews with survivors all the time.”
The new legislation would enable survivors to prevent debt collection by providing a “statement of coerced debt,” as well as supporting documents, to the collection agency.
The consequences of financial abuse
Financial abuse is closely connected to housing insecurity, and coerced debt often leads to outcomes like poor credit which can disqualify applicants from being approved for housing, including affordable housing programs.
“When they have the financial resources to leave, they do,” Maralea Negron, Director of Policy, Advocacy and Research at The Network: Advocating Against Domestic Violence. “So the stereotypical comment of ‘Why didn’t she leave sooner?’ They don’t leave sooner because they don’t have the resources to.”
According to Negron, survivors who attempt to secure safe housing by reaching out to domestic violence hotlines are often left hanging when there aren’t enough beds for them at shelters.
In 2024, Illinois Coalition Against Domestic Violence (ILCADV) turned away 4,900 adults and 3,800 children seeking emergency shelter due to shelter capacity—a 22% increase in overflow from 2023. During 2024, ILCADV assisted more than 42,000 adult survivors and more than 7,800 child witnesses, according to a 2024 ILCADV study.
Deaths related to domestic violence have also been rising—according to ILCADV’s most recent report, Illinois experienced a 110% increase in deaths associated with domestic violence between 2022 and 2023.
Raising awareness
“This movement of addressing coerced debt and financial abuse is also about understanding that domestic violence goes beyond the physical—and it can really impact every area of a person’s life,” Negron said.
Previous legislation, including the Illinois Domestic Violence Act passed in 1986, primarily focused on addressing domestic violence through law enforcement and the courts.
Negron notes that while the main focus has been on addressing the physical and emotional dangers of domestic violence, financial violence can have severe and long-lasting consequences as well.
“Its a tremendous issue for survivors when they’re starting to rebuild and look at what they’re going to do next,” Negron said. “This legislation will be impactful, and I hope that we can educate the general public on [coerced debt], but I think there’s so much packed into financial abuse that this is just one piece of it.”
The Illinois bill follows the passage of similar legislation in other states, including California, Texas and Minnesota, aimed at prioritizing the financial security of survivors. According to Negron, these changes come amid a movement around creating more nuanced awareness of the many ways in which domestic violence impact survivors.
Help is available
For people experiencing ongoing domestic violence, addressing coerced debt and financial abuse may be one element of a bigger plan to seek safety and leave their abuser.
The Network: Advocating Against Domestic Violence offers an online portal to chat with a hotline advocate, and can also be reached through their 24/7 hotline at 877-863-6338 via text or phone call. Assistance is available in more than 240 languages.
The Network Online: https://the-network.org/illinois-domestic-violence-hotline
Help is also available through the National Domestic Violence Hotline at 800-799-7233