+1.
No One just "files" for no reason. And they sure dont make the decision lightly. Also, it costs about 2K to even get the paperwork going.
I was at work one day, and came back to the Plant only to be greeted by my Secretary with a paper that was faxed in claiming a judgment had been found in favor of a creditor and I would now be levied at 39% of each bi-weekly paycheck.
I had upwards of $200,000 in Medical bills that the insurance company flat refused to pay for labor and delivery costs. I had been with my insurance company/employer for 5 years + at the time and never needed to have anything covered. I had the hospital resubmit the bills several times to no avail. They finally gave up and 2 years later sought judgement on me for the unpaid balances(although I had already met my OOP and deductible for the year in question). I had received verbal authorization for service at said facility prior to entry as well. My Mistake-not getting it in writing.
I was a single parent. I made 10$ an Hr. I didn't qualify for ANY help from ANYWHERE. My daycare bill was 1200$ plus a month due to the mandatory OT I was obligated to(and all the OT $ went to taxes because now its higher tax tier so i was basically working for free 8 hrs of my 16 hour days). My mother would send 600$ mo to cover half the cost of daycare.
Prospects: Take home per PP was 800$, Net was 1600 after tax monthly. Add 600 for daycare help =$2200 - 1200=1000. 1000-750 rent=250 to cover Food.Diapers.Gas.Electric.Phone.Shampoo Car Insurance. I was always behind from one month to the next. I used up all my savings in the months prior to this just trying to stay afloat. The month this came in I was down to my last 200$ out of 8000.00 I had saved prior to childbirth.
Now, lets add in a 39% garnishment
Take Home=$1600 *.39 =624 $1600-624=976 Mo Take Home 976+600=1576.00. $1576-1200 = 376 $376-$750 =-374 . Thats before anything else gets paid.
There is no way I would have ever recovered from that . Ever. Also, none of it was due to some financial error on my part, as I did everything you are supposed to do in accordance with standard operating procedure.
In the end, that was my last week of employment at that shop. I Quit and filed BK with my last 600$, I had to pay off the retainer fee in several payments and go to court to swear insolvency.
No one who goes through with that, does it lightly. So its more of a YMMV thing I think, rather than a sterotype of easyness that is portrayed on occasion.
