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”)