Depends on if you can afford bankruptcy. I have a friend from high school who went through bankruptcy for medical debt. All it took was their landlord not renewing their lease for them to be homeless afterwards, because no one else would rent to them with a recent bankruptcy on their credit report. They don't make enough money for that bankruptcy to not have ruined their life.

Yeah this is my concern with every having to file bankruptcy. I can live without credit, loans, etc. I cannot live without a place to live.

That's a good point. You definitely need family or a significant other to provide a safety net while you rebuild.

Are you referring to company bankruptcy or personal? Company is easy, personal is extreme.

Personal. What's extreme? My friend (or me if you think I'm doing that joke) is rebuilding their credit now. They discharged a bunch of medical and credit card debt.

Absolutely. You’ll be issued credit right away (at higher rates), since you can’t go BK again for a number of years [1] and you’re eligible for an FHA mortgage 1-2 years after filing BK. It’s not great, but it’s not a financial death sentence either. It’s arguably one of the reasons for financial dynamism in the US, where failure is less risky (compared to other OECD countries without such debt forgiveness mechanisms).

[1] https://upsolve.org/learn/how-often-can-you-file-bankruptcy/ (Control-F “Time Limits”)