Bankruptcy hurts your credit, but if you are considering filing, chances are your credit is already affected. Bankruptcy allows you to start to rebuild your credit.
You might have difficulty obtaining credit within one year of the bankruptcy. Most people can buy a car at a high interest rate with a substantial amount down even within that first year. After the first year, things get easier. Many mortgage lenders will grant you a loan at their lowest interest rates four years after the bankruptcy. Bankruptcy stays on your credit reports 7 to 10 years.