Bankruptcy does adversely affect your credit for several years, but perhaps no worse than what your current credit state already is. From a future lender’s perspective, bankruptcy is a liability that they have to protect themselves against.
Those who declare bankruptcy are given the opportunity to breathe relief from current debts and start over again to rebuild their future credit worthiness. A Chapter 7 & Chapter 13 bankruptcy can be reported for no more than 10 years. Under either Chapter, as early as one year after a bankruptcy, the negative effects begin to dissipate as time passes. While filing bankruptcy may be the only viable option, it should never be filed lightly, without consideration of all the consequences and a thorough evaluation of your situation.