Can a judge renegotiate interest rates or loan terms?

A judge, during bankruptcy proceedings, has the power to adjust or change the interest rates or loan terms for a debtor as long as the loan is not on the debtor’s primary residence. This gives a judge the power to adjust interest rates on credit cards, car loans, boat loans, vacation property mortgages, investment property mortgages, and any other interest rate or loan term there is except for a primary residence mortgage.

Back to FAQs