HF2413 Summary

• Establishes new law in Minnesota Statutes chapter 332 providing remedies for debtors who incurred debt through coercion, fraud, identity theft, or economic abuse related to domestic abuse, harassment, or sex/labor trafficking.

• Prohibits any person from causing another person to incur coerced debt and defines coerced debt as debt incurred without knowledge/consent, through force/intimidation/fraud, or through economic abuse (excluding secured debt).

• Requires debtors to notify creditors by certified mail with documentation (police report, FTC identity theft report, court order, or sworn certification from qualified professional) and allow 30 days for creditor response before filing court action.

• Allows debtors to petition district court for declaratory judgment, injunction preventing collection, or case dismissal; requires courts to implement procedural safeguards including sealing files and allowing remote proceedings to protect debtor safety.

• Creates presumption of coerced debt if the person causing the debt was criminally convicted or pleaded guilty to relevant crimes; preserves creditor's right to pursue payment from the person who caused the coerced debt; effective January 1, 2024.