Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is Kirk and I'm a Bankruptcy litigation attorney.
The only way that you can get out of this obligation without paying any additional interest is to file chapter 7 bankruptcy and have the debt discharged as an unsecured debt.
Otherwise, you have a contractual obligation to satisfy the debt. These types of loans are outrageous and usually always results in bad situations like this. This is especially true in states like yours, where there is no usury limit (no maximum legal interest rate).
You certainly can call the lender and try to reach a settlement for less than you currently owe. The best way to achieve this is with a lump sum offer. However, if the lender refuses to negotiate, bankruptcy is the only guaranteed to get rid of this debt.