It actually stays with you for 10 years, not seven. And people can still ask you if you've ever filed for bankruptcy and you have to say yes, even if it's been over ten years. (Things like cell phones, landlords, etc. will sometimes ask).
If it were me, I would first try everything else I could before filing for bankruptcy. I would also check out DaveRamsey.com and his book Total Money Makeover. If you can turn this around it would be better for you and your family.
GOOD LUCK, and sorry you are going through this.
at 8:37 PM on Jul. 18, 2010