June 24, 2016, Alexandria, Va.— The latest American Bankruptcy Institute (ABI) podcast features Spring 2016 ABI Resident Scholar Prof. Melissa Jacoby talking with Prof. Angela K. Littwin of the University of Texas at Austin School of Law about Littwin's research on the relationship between consumer credit and domestic violence. Littwin interviewed domestic violence victims about "coerced debt," which occurs when the abuser in a violent relationship obtains credit in the victim's name via fraud or coercion. “Most victims don't find out the full details until they leave the relationship,” said Littwin. “People’s credit can just be ruined.”
From her interviews with domestic violence victims and research, Littwin found that nearly one-third had experienced coerced debt. “When a victim tries to leave an abusive relationship, she cannot get a job or housing, which are crucial to starting a life away from the abuser,” Littwin said.
To assist victims of coerced debt, Littwin has a few proposals for practitioners, regulators and policymakers. While lawyers don’t typically have the expertise to screen for domestic violence, Littwin said that they can review a client’s credit report for fraud. “If most of a client’s debt was incurred through fraudulent coerced debt, she may need other remedies and might not need bankruptcy, so that could change the legal advice,” according to Littwin.
Littwin advocates for policymakers and regulators to take steps to block past coerced debt from the victims’ credit reports, and to block present coerced debt when reporting to employers, landlords and utility companies. “If the abuser was managing the account, then the payment history is not relevant to future payment performance [for the victim].”
Click here to listen to the podcast.
ABI’s podcast series features interviews with important figures or experts discussing timely bankruptcy topics or issues. ABI podcasts are freely available to members, the public and the press, and can be accessed on ABI’s Newsroom website.
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