Wage Garnishment Question / NCO Financial

[gypsylou]

What is the name of your state? CA

I have been contacted by NCO Financial about defaulted student loan. It has been defaulted now for over 10 years. NCO is saying they will garnish my wages next week. Don't they have to get a court order. Also, I am the sole provider for my two children and my wages just meet my bills. Will most of my income be exempt and how do I go about filing some kind of a financial statement. This NCO company are threatening me and are unwilling to accept my offer to pay $100 per month.

Thanks,
Gypsy

[seniorjudge]

Q: Don't they have to get a court order.

A: They must get a judgment against you first and then a court order to garnish.

[IrishNodak]

Originally Posted by seniorjudge

Q: Don't they have to get a court order.

A: They must get a judgment against you first and then a court order to garnish.

I used to think that too but according to new laws and if it's a goverment student loan that isn't true. Here is a link. It's a long read but not only can the goverment/dept. of education garnish without a court order they can assign that same right to a collection agency.

[url]http://www.ed.gov/legislation/FedRegister/finrule/2003-1/021903a.html[/url]

However, you do have rights to a hearing to defend the garnishment or claim hardship if you meet their criteria. Read the entire link for parts that will help you.

I know how it feels tho'. Years ago Social Security went into our checking account and took out money with no notice at all. Turns out they have every legal right to do so!