Most people in financial distress don't do bankruptcy. They run up their credit cards/car loans/etc. till the interest payments are high enough that they are living paycheck-to-paycheck. They get stuck in that situation. I think in the US only the government can garnish wages. Private entities can only bug you a lot and wreck your credit. I just don't think UBI solves the poverty problem like many people think. But I sure would like some country to try it to see what happens.