Yes, it is. If you qualify for it. Now that we have an answer, let’s talk about the relationship between recessions and bankruptcies.

Recessions, which Oxford Dictionaries defines as times of economic decline lasting two quarters or more, have long been part of bigger economic cycles in our country. During the “Great Recession” a decade ago, millions of Americans lost their jobs and/or homes, and many of those people used bankruptcy filings to alleviate their burdens.

If another recession occurs soon, will that change your ability to get out of debt through legal means? Probably not.

Financial crisis happens

Macroeconomics is a complicated thing, but so is personal finance. We all experience hard times in our lives. Many consumer debt problems can originate in wider financial crises, while others are simply exposed, magnified or exacerbated when things get bad. Even when times are good, a divorce, a layoff, an illness or another event can really mess things up and create a debt problem.

The 2007-2010 mortgage crisis and the subsequent recession are often thought of in relation to people losing employment or losing equity in their homes. But it is common to blame the problem on subprime mortgages, which allowed people to get houses they could never actually afford — and which allowed Wall Street to create securities that failed miserably. And so on.

The law works in good times and bad

The great thing about bankruptcy is that it’s rooted in the law, especially federal law. If you feel trapped in debt, you may be able to use legal means to obtain huge debt relief, regardless of what economists are saying. Every situation is different, so it’s important to seek professional guidance if you’re considering a bankruptcy filing.