9 V.S.A. § 2495d: Civil legal remedies [Effective July 1, 2028]

(a)(1) A debtor shall not be liable to a creditor for coerced debt.

(2) In any action initiated by a creditor to seek collection of a debt from a debtor, the debtor may establish a prima facie case that the debt is coerced debt by submitting a statement of coerced debt and adequate documentation. If the debtor establishes a prima facie case of coerced debt, the creditor shall bear the burden of proving, by a preponderance of the evidence, that the debt is not coerced debt.

(b) If a court finds a debt is coerced debt:

(1) the court shall vacate any previous default judgment issued against the debtor on the coerced debt;

(2) the creditor shall have a cause of action against the perpetrator; and

(3) the debtor shall have a cause of action against the perpetrator for any payments made or costs incurred by the debtor in connection with the coerced debt.

(c) This section shall not be construed to limit or infringe upon any other rights or remedies available under common law or any other provision of law or rule.

(d) If a debtor signs a sworn statement that disclosing the identity of and contact information for the perpetrator is likely to result in future abuse to the debtor or a member of the debtor’s immediate family, the creditor may file a motion requesting a hearing to determine the danger of future abuse to the debtor or to a member of the debtor’s immediate family. The debtor shall bear the burden of proving by a preponderance of the evidence that, if the debtor discloses the identity of and contact information for the perpetrator, the perpetrator poses a danger of future abuse to the debtor or to a member of the debtor’s immediate family. If the court finds that the debtor meets this burden, the debtor shall not be required to disclose the information. If the debtor does not meet this burden, the court shall order the debtor to disclose the identity of and, if known, the contact information of the perpetrator.

(e) In any action involving an alleged coerced debt, upon motion of the debtor, the court may seal court records in accordance with Rule 9 of the Vermont Rules for Public Access to Court Records, redact personally identifiable information, or direct that any deposition or evidentiary hearing be conducted remotely to protect the debtor or a member of the debtor’s immediate family from a perpetrator. A debtor seeking a relief from abuse order or an order against stalking or sexual assault shall do so in accordance with 15 V.S.A. chapter 21 or 12 V.S.A. chapter 178, respectively.

(f) The provisions of this subchapter apply in any action brought in a court of this State, notwithstanding a contractual choice-of-law provision.

(g) Nothing in this subchapter shall be construed to preclude a creditor from seeking recourse under applicable law for a claim of coerced debt that is knowingly and materially false.

(h) A perpetrator shall not be a necessary party to an action between a creditor and a debtor under this subchapter. However, no finding in such an action shall be binding on a person who was not a party to the action.

(i) An action by a debtor against a perpetrator shall be commenced within six years after the date the debtor discovered or reasonably should have discovered the coerced debt or within six years after the coercion or abuse giving rise to the debt ceased, whichever is later.

(j) An action by a creditor against a perpetrator shall be commenced within six years after the date the creditor received the debtor’s statement of coerced debt and adequate documentation or received notice of the identity of the perpetrator, whichever is later.