Legal Question in Bankruptcy in New York
disability student loan and credit card bills
My 35yr old recently suffered a stroke and now she has aphasia. Needless to say, she is unable to work. she is married but his salary is not enough to pay for (even just her) credit card bills and her student loan (she just graduated 9 months ago). is there a way to negotiate with the private loan company to freeze her bills (indefinitely) without accruing interest? same with the credit card bills. She and her husband are under severe financial distress since the stroke (she made more than 70% of the household income).
2 Answers from Attorneys
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.
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