Might have trouble finding an apartment. The lowered credit score will probably cause increased costs for things like car insurance. Life insurance may be a no-go. Employers in some industries do credit checks, too.

It's a good option in crushing debt, but it's not without significant mid-term downsides.

If they are in the ballpark of bankruptcy, their credit score will already be destroyed. Bankruptcy will actually improve a credit score

Bankruptcy will eventually improve the score. It's not instant, and may substantially worsen it in the short term. Some organizations that do credit checks may also have a "no recent bankruptcy" policy despite accepting lower credit scores.

Not everyone's way behind at the time they declare bankruptcy, either. We did it because six figures worth of medical debt was ceasing to be juggleable, and disability approval (and back pay) looked to be years out still. Credit score was largely fine at the time we filed.

I agree, bankruptcy is an unfortunate solution for unexpected medical debt, as it impacts ones consumer credit score. FWIW the GP comment was referring to "banks who loan money to folks who cannot afford it" which implies baling out consumer debt instead of filing for bankruptcy

Exactly, bankruptcy punishes the creditor which is how the system is designed. They assume the risk instead of passing it on to society.