The bank can actually.I am working with Recovery Dept before.Let say your principal RM30K + interest RM10K.Total RM40k.Anything that above the principal amount is a good proposal.Bank are willing to waive the interest part but you must know how to bargain and propose.I manage to get my customer to get a waiver of more than 200K for his housing loan.The total loan amount is roughly RM1.3Million.Credit card is also the same.It up to the bank to give a waiver or not.