Payday Loans and Bankruptcy in San Antonio

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

Payday and Title Lending in Texas

Texas allows payday and car title lending through the CSO (credit services organization) model. APRs often exceed 400%. San Antonio has one of the highest concentrations of payday lending storefronts in the state.

  • Payday loans -- short-term, high-interest, unsecured
  • Car title loans -- secured by vehicle title, risk losing your car
  • Online installment loans -- longer-term but still very high APR

Discharging in Bankruptcy

Payday Loans (Unsecured)

  • Fully dischargeable in Chapter 7
  • Paid at pennies on dollar in Chapter 13
  • Stop ACH debits by revoking bank authorization

Car Title Loans (Secured)

  • Lien survives discharge
  • Chapter 13: pay through plan, possible cram down if >910 days
  • Chapter 7: pay, redeem, or surrender

Frequently Asked Questions

Can payday loans be discharged?

Yes. Unsecured debt, generally dischargeable in both chapters. Lender must prove fraud to prevent discharge.

Are payday loans legal in Texas?

Yes. Texas allows them through the CSO model with very high APRs. San Antonio has many payday lending storefronts.

Can a lender debit my account after filing?

No. The automatic stay prohibits all collection including ACH debits. Revoke authorization immediately.

What about car title loans?

Secured by your vehicle. In Chapter 13, pay through plan with possible cram down. In Chapter 7, pay, redeem, or surrender.

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