There are a lot of myths during the 7th moon or more commonly referred to as the Hungry Ghost Festival (or Ghost Festival).
The most popular myths are the following and the truths about them with respect to the philosophies and scriptures of Buddhism and Taoism.
Myth 1: The gates of Hell are opened during every 7th lunar month. Which means souls leave Hell and freely go to the living world.
THE TRUTH: Not all beings will be reborn in hell. Those who have earned strong negative karmas when they were alive will be the ones who will be reborn in hell. Although, when these souls have cleansed and lessen their bad karma they will again have the chance to be born in the living world. Therefore, all souls have the chance to leave hell and not only when it's the 7th month but when they have payed enough for their bad karma.
Myth 2: During the 7th month, hungry ghosts from hell roam the world freely as wandering spirits.