Legal Question in Bankruptcy in New York

Re: disability student loan and credit card bills

Everything is a possibility, but do you really think they'll take the offer if you call and say, "Hey, how's about we just stop paying our bill until we change our minds?" You really think they'll go for that?

A better idea may be to try to negotiate a lower interest rate or payment. They might also want to speak to a bankruptcy lawyer.

Re: disability student loan and credit card bills

Unfortunately, it is highly unlikely that a creditor will stop all interest on a debt. While it is certainly the human thing to do, it just doesn't make good business sense. However, they may reduce it, but even that is unlikely unless the debt has either already charged off or the debtor is working through a recognized non-profit credit counselor (like Consumer Credit Counseling Services CCCS). Generally speaking, most private for-profit debt negotiators are a waste of money.

From a purely legal prospective though, and I am reading a lot of presumes facts into your daughter's situation, she shoudl probably talk to a bankruptcy lawyer about Chapter 13. Loss of 70% of the household income is probably going to put the bills outside of what even CCCS could handle.

Sorry.