When people discuss bankruptcy, you will often find that they have very strong views on the subject, even if they have little or no actual experience of the process. Many will try to convince you that bankruptcy is all about a person's moral character, but this couldn't be further from the truth - it's a financial decision, nothing more.

Here are some of the more common bankruptcy myths, their origins, and the reasons why they're more often than not completely unfounded:

1. People Who File For Bankruptcy Are Lazy

It is a common misconception that people who go bankrupt are deadbeats who decide to exploit loopholes in the financial legal system to waste thousands of dollars, and then use bankruptcy as a 'get out of jail free' card to rid them of their responsibilities.

Unsurprisingly, it is the credit industry that perpetrates these stories, as it wants people to feel as if bankruptcy is not an option for them.

In reality, most people who file for bankruptcy never set out to exploit the system. In fact more often than not they've been very responsible with their finances in the past but, due to a large medical bill or loss of a job for example, have suddenly found themselves unable to keep up with their debt payments.

2. Bankruptcy Is An Easy Way Out

Once again, the credit industry likes to make us think that bankruptcy is a simple solution, with people able to shed their debts almost instantly, and then go back to building huge debts again.

In reality, bankruptcy is far from an easy option. It is a long, complicated process which can cause considerable emotional strain. The effects of bankruptcy may stick with you for years, meaning it is certainly no permanent escape. On top of that, it can cause significant strain between you and your friends and relatives. It can also affect your future job prospects, as some employers view bankruptcy as a big black mark, signifying that you are unreliable or even untrustworthy.

3. The Rest Of Society Foots The Bill

The theory goes that if people have easy access to the bankruptcy system, that lost money has to be made up somewhere, and it is the taxpayers who end up paying in the long run.

In reality, this argument doesn't hold water at all. If there was no bankruptcy system, then the people who are struggling would have nowhere to turn, and their situation would become even worse. This would create even more debt, and the credit companies would still need to write it off somewhere down the line.

Providing easy access to the bankruptcy system actually reduces the amount of debt that society has to cover, and also provides people with a much-needed solution if they find themselves hitting hard times. It is not something that everyone is eligible to use, so it is certainly not an 'easy way out'; it simply provides an essential escape for people who have no other option.