Many people believe that bankruptcy is worse for your credit than foreclosure, but that's not necessarily true. When you look into what the Fair Credit Reporting Act does, you'll see that during a foreclosure you get a judgment against you. A judgment says that something happened and that you may owe money. When creditors see this on a credit report they worry that you'll take their collateral, and they may not give you credit. Under Florida law, it can stay out there for about 10 years and could be renewed for another 10 years. In bankruptcy, the worst case scenario is that you'll be in debt for five years under a Chapter 13, and the best case scenario is you'll be in debt six months under a Chapter 7. Once your debt is gone, there's no forceful effect of a judgment. For more details, check out the video.