Discharging Credit Card Debt in San Antonio Bankruptcy

Credit card debt is the most common reason people file bankruptcy. Texas offers a unique advantage: no consumer wage garnishment. But bankruptcy provides broader, permanent relief.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

Chapter 7 vs Chapter 13

Chapter 7

  • Debt eliminated in 3-4 months
  • Must pass means test ($60,840 median for 1 person)
  • Filing fee: $338
  • Texas unlimited homestead + vehicle exemptions protect your property

Chapter 13

  • Pay a portion over 3-5 years
  • No income limit
  • Filing fee: $313
  • Unsecured creditors often receive 0-10%

Texas Advantage: No Consumer Wage Garnishment

Texas prohibits wage garnishment for consumer debts. Credit card creditors cannot garnish your wages even with a judgment. However, they can freeze bank accounts and place liens on non-homestead property. Bankruptcy stops all collection through the automatic stay.

Exceptions to Discharge

  • 90-day luxury rule: Luxury goods over $800 to a single creditor within 90 days of filing
  • 70-day cash advance rule: Cash advances over $1,100 within 70 days
  • Fraud: Charges made with no intent to repay or false credit applications

In practice, creditors rarely challenge discharge for typical consumer balances.

Frequently Asked Questions

Can I discharge credit card debt in bankruptcy?

Yes. Credit card debt is unsecured and generally dischargeable in both Chapter 7 and Chapter 13.

Does Texas protect me from credit card garnishment?

Yes. Texas prohibits consumer wage garnishment. However, creditors with judgments can freeze bank accounts. Bankruptcy stops all collection.

Are recent charges dischargeable?

Luxury goods over $800 within 90 days and cash advances over $1,100 within 70 days are presumed nondischargeable. The creditor must object.

How much debt do I need to file?

No minimum. Bankruptcy typically makes sense when debt exceeds $10,000 or you cannot pay it off within 3-5 years.

Free Discharge ScreenerChapter 7 vs 13

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