Misconception #10: Taxes can't be eliminated in bankruptcy.
Wrong. Many taxes are eliminated in bankruptcy. There are several complex rules that apply. Eliminating taxes depends on how old the taxes are, when the returns were filed, and whether the taxes have been assessed, and the type of taxes. Both federal and state income taxes can be eliminated in bankruptcy. Even in cases where the taxes cannot be eliminated, it's often possible to force a payment plan on the IRS and stop interest and penalties from being added to the bill.
Misconception #11: I must be broke to file bankruptcy.
Not really. Although it would not make much sense to file bankruptcy when you are not in financial trouble, there is no requirement that a person be destitute. The bankruptcy code doesn't require that you be unemployed, homeless, or own no property. In fact, you are able to file bankruptcy without losing your job, giving up your home, or having your property taken away.