I live in Winter Park, FL
I am head of household. One child 4 years. Wife who does not work
NCO Financial Systems is a third party debt collector that collects, among other things, student loans. When one doesn't pay their student loans back their income can be garnished/assigned according to Federal Law to satisfy the debt. What NCO Financial Systems cannot do is treat you unfairly or violate the FDCPA. If they violate the FDCPA by calling you at odd times, calling you over and over, threatening to take action that they cannot take, etc. then you are the one that will be suing them.
See if there is a rehabilitation program that you can enroll in to perhaps get the loans current. I wish you well, sir. If NCO steps over the line and abuses you or is rude to you hire one of us consumer attorneys to enforce your rights. Let me know if you have a follow up question, I'd be glad to help.
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Chapter 7 Bankruptcy Attorney
No, they can't, but the government can without getting a judgment.
If a debt collector from NCO told you they are going to garnish your paycheck that is most likely a violation of the FDCPA. I would contact a local FDCPA attorney to see if you have a claim. Try the NACA site to find one: http://www.naca.net/
You need to get your loans out of default though. You can get them out of default by consolidation through Direct loans. http://www.direct.ed.gov/
If you have already used consolidation through Direct loans you can still rehabilitate them. Consolidation is better though because you take them right our of default and into an alternate payment plan like Income Based Repayment.
The information provided here is intended to help you be an informed legal consumer and is not a substitute for representation by an attorney.
I agree with my two colleagues. The government can also setoff your tax refund to go towards paying the federal student loan debt. Your best bet is to get yourself in a non-delinquent status.
The above information does not establish an attorney-client relationship and is based upon the limited information the questioner provided. Unless you have signed a representation letter and paid a retainer, you are not a client of the firm. You should seek legal advice from an attorney in your area if you want a full legal opinion in this matter.