The truth is that some people's credit will be damaged for a while, and some peoples credit may improve after filing Bankruptcy. If you already have a huge debt to income ratio, with a lot of late payments, repossessions, foreclosures and judgments, Bankruptcy will probably improve your credit score and make you a better credit risk. However, if you had a high credit score prior to filing for bankruptcy, your credit will suffer, but it can be rebuilt over time. The Bankruptcy may stay on some credit reports for 7-10 years, but that also puts potential lenders on notice that you can't file for Chapter 7 Bankruptcy again for 8 years, so they my feel it is safe to lend you money.