Bankruptcy is a legal remedy that can discharge or reorganize certain debts, offering relief to people with unmanageable obligations. It’s not a moral failing — it’s a formal process with long-term credit consequences, potential collateral effects, and differences between chapter types (in some jurisdictions). Importantly, some obligations (recent tax debts, child support, many student loans) are often not dischargeable; secured debts tied to property (like a car or mortgage) may be reaffirmed or repossessed if you stop paying. Because bankruptcy affects future credit access and may have other legal ramifications, it’s usually a last-resort option after exploring counseling, negotiation, and restructuring. The question asks which general statement about bankruptcy is accurate at a conceptual level.