3) Is largely not true, the EU is largely heterogeneous when it comes to personal bankruptcy laws. The fact that unsecured consumer loans are as cheap as secured consumer loans (e.g. car loans), in many EU countries, shows that it is very to get rid of debt permanently. In the country I know best a personal bankruptcy means that you have to keep paying your debts for a period of 5 years before they are forgiven. During this time you must live on $500 per month (excl. rent) the rest goes to the creditors.