MD HB1198

Creates new protections for debtors whose debt was incurred through fraud, duress, coercion, or identity theft in contexts including domestic abuse, human trafficking, labor trafficking, financial exploitation, and harassment

Requires debtors to provide written notice with documentation (police report, FTC identity theft report, court order, or sworn certification from qualified third party) to creditors before filing civil action; creditors must respond within 30 days

Allows debtors to seek equitable relief including declaratory judgment that debt is coerced, injunctions against collection and credit reporting, dismissal of collection lawsuits, and deletion of debt from credit reports

Permits debtors who obtain a coerced debt judgment to sue the individual who caused the debt for damages, attorney's fees, and court costs; establishes coerced debt as an affirmative defense in collection actions

Excludes debts secured by real property from the definition of coerced debt; agreements waiving rights under this subtitle are void as against public policy; effective October 1, 2026