I am currently in default in my student loans and have been working on knocking down my debt.  I wanted to tackle this one last since it is my biggest 30k.  The overall debt has been passed around from collection agency to collection agency and now this last one has thrown me a new wrinkle. I’ve received a letter from Transworld System informing me that this is a notice “prior to wage withholding” and that this letter is letting me know that this letter has been issued May 25th. 2016 and I have 30 days to respond before they file.  Now I’d like to know if:

A.  Can they take me to court and possibly win a judgement that allows them to garnish my pay.
B.  The original amount has some additional fees tacked on so now the total amount is: 40k instead of the original 30k. Can this be negotiated back down to the original amount?
C.  Can I go back to the original creditor and work something out?

I’d much rather deal with the original creditor and work out a payment plan with them but I’m not sure if that’s even an option at this point.  So do I open the door to Transworld Systems Inc. or look for another forgiveness program to start paying this debt back?  If it helps I reside in GA and this was opened in 2005-2006