One disadvantage of a bankruptcy filing is that the credit of the debtor will be negatively affected for a long period of time, but not forever. While the length of time that creditors consider a bankruptcy filing in making a credit determination varies, the following provides the “conventional wisdom” regarding the effect of bankruptcy on credit determinations. Most creditors consider a Chapter 7 bankruptcy filing in making credit decisions for a period of 7-10 years, and a Chapter 13 bankruptcy filing for a period of 4-7 years. The more years that have passed since a bankruptcy filing, the fewer creditors consider it a factor in their decision-making. In addition, on-time payments to creditors after bankruptcy can affect your credit positively, helping to combat the negative effects of a bankruptcy filing. In addition, a home foreclosure is generally considered by creditors for a period of about 4 years, and this is a useful comparison when evaluating the negative effects of bankruptcy on credit. Fortunately, if you are in foreclosure and then declare bankruptcy, the time periods do not stack. In other words, if you file a Chapter 7 bankruptcy while in foreclosure or not in foreclosure, the effect on your credit is the same.