Colorado House Advances HB 11 94 to Combat Economic Abuse and Coerced Debt

The House Finance Committee of the Colorado State Legislature convened on March 20, 2025, to discuss House Bill 1194, aimed at addressing economic abuse in domestic violence situations. The bill seeks to protect victims from being held responsible for debts incurred through coercion by their abusers, a form of financial control that often traps individuals in abusive relationships.

The meeting began with Representative Armingash highlighting the devastating impact of coerced debt, which can be as harmful as physical abuse. Victims often remain with their abuser due to financial constraints, and even those who escape frequently face ruined credit, hindering their ability to secure housing and employment. Current laws do not adequately protect victims from coerced debt, leaving them vulnerable to homelessness and further abuse.

Representative Lindsey emphasized that economic abuse occurs in 98% of abusive relationships and is a primary reason victims stay or return to their abusers. The proposed legislation would require creditors to cease collection efforts upon receiving credible evidence of coerced debt, placing the burden of proof on the creditor to demonstrate that the debt was not coerced. This shift aims to empower survivors and provide them with a legal avenue to challenge unjust debts.

The committee discussed the fiscal implications of the bill, noting that filing fees from civil cases could generate significant revenue for the state. However, concerns were raised regarding the potential increase in court filings and the associated costs. The fiscal analyst indicated that while the bill is expected to increase filings, precise estimates are still being refined.

Witness testimonies from various advocates and survivors underscored the urgency of the bill. Soledad Diaz from Violence Free Colorado described economic abuse as a pervasive issue that can devastate financial stability. Regina Downing, a survivor, shared her personal experience of financial control and the ongoing struggles she faces due to coerced debt. Other advocates echoed these sentiments, emphasizing the need for legal protections to help survivors regain their financial independence.

The committee concluded the testimony phase, with members expressing support for the bill's objectives. The discussion highlighted the importance of addressing economic abuse as a critical component of domestic violence legislation. The committee aims to finalize the bill and move it forward, recognizing its potential to significantly impact the lives of survivors in Colorado.