A bankruptcy discharge will remain on your credit report for 7 to 10 years, but will eventually improve your credit rating. Credit ratings are computed in part by looking at how much debt you have as compared to the amount of credit you have unused. Before bankruptcy people often have several maxed-out credit cards, and it is these credit cards that are giving them the bad credit rating because they have much more debt than credit. A bankruptcy discharge creates the opposite situation by wiping out these debts, so that the filer has not used any of his available credit. Think about it from the lender's point of view, would you rather lend to someone who already owes thousands of dollars to others, or to someone who has no other debts, but just filed bankruptcy?
Most of our clients receive credit card offers within the month after they file bankruptcy, and many get home mortgages within 2 to 3 years of their discharge. The best way to maintain your credit rating in the face of mounting debt is to file bankruptcy immediately and start over rather than struggle over time to attempt to pay off debts that are constantly increased by late fees and interest.