Civil Actions - Coerced Debt - Debtor Protections

HB 1198 creates new protections for debtors who incurred debt through coercion (such as fraud, domestic abuse, human trafficking, or exploitation). It requires debtors to provide creditors with written notice and "adequate documentation" (like police reports or court orders) proving the debt was coerced, after which creditors must immediately stop collection efforts. Creditors must confirm receipt of the notice, inform credit bureaus the debt is disputed, and wait at least 40 days before resuming collection if they choose to do so. The bill applies to all debtors in Maryland who face such coerced debts, excluding debts secured by real property.