Bad things happen to good people.  We're all aware of the scenario.  Extenuating factors such as a job loss, poor economic conditions, a major injury or health related issue, can all create a whirlwind and dramatically effect people in a hurry.

Whether it's bankruptcy, debt collection, or foreclosure, people need to know the main thing is give it time.  7-10 years may seem like an eternity, but when people "work" on their credit after the said event, these little things can all add up to help speed up the 7-10 year time frame.  Steps to help in this process are making payments on time, not carrying large credit card balances, and applying for new credit only when necessary.

Over time, the negatives will eventually reflect less poorly on one's credit score.  That late payment 12 months ago, doesn't effect a person's credit nearly as bad as 1 month ago.  Foreclosure and bankruptcy do have a more profound effect on the amount of time needed to recover.  In short, consumers need to understand that when bad does happen to good people, all is not lost.  Time, patience, and optimism are all critical factors that play into rebuilding credit.

Source: realtor.com