I am really struggling with this question. My husband and I are about 20-$25,000 in credit card debt. I owe about $9,000 in student loans (I know that I must pay those back) and I have a $342 car payment and $350 rent payment a month. My husbasnd is not working and so we are just barely making it. My brother in law maintains that if we file bankruptcy (chapter 7) it will destroy our credit and we won't be able to buy a house for 10-15 years. I'm confused as to what exactly bankruptcy does to your credit and how long it adversely affects you.