Can I Get All My Credit Card Debt Discharged?

 Posted on June 26, 2026 in Bankruptcy

Americans are no strangers to credit card debt. According to TransUnion, one of the largest credit reporting agencies in the country, the average credit card debt per American was $6,715 at the end of last year. While credit card debt is not always bad, for many, it can become increasingly burdensome on their finances until they can no longer keep up. 

Thankfully, there are ways to entirely or almost entirely discharge this debt through a bankruptcy filing. If you're considering bankruptcy in 2026, a Harris County, TX bankruptcy lawyer can clarify which charges will be removed fully by filing.

Can All Credit Card Debt Be Discharged in Bankruptcy?

Credit card debt can largely be discharged through a Chapter 7 bankruptcy filing. Credit card debt is classified as unsecured, nonpriority debt. This is because no collateral backs the balance and it doesn’t fall into any of the "protected" categories of debt like taxes or child support. For most filers, the bulk of their credit card balance disappears completely once the bankruptcy case is finished.

There are a few exceptions to this. Federal law 11 U.S.C. § 523 lists specific categories of debt that bankruptcy will not automatically remove.

What Credit Card Charges Are Nondischargeable by Bankruptcy?

Two situations can create a rebuttable presumption that credit card debt was incurred through fraud and therefore may not be discharged in bankruptcy. Generally, this presumption applies when you make substantial purchases of luxury goods or services or take significant cash advances shortly before filing for bankruptcy.

"Luxury goods" are purchases that are not reasonably necessary to support you or your dependents. Groceries, rent, utilities, and gasoline generally do not qualify. Electronics, jewelry, vacations, and similar discretionary purchases are more likely to fall into this category.

This legal presumption isn't automatic proof of fraud. The creditor has to file a separate proceeding in the bankruptcy court and argue that fraud has been committed. You're allowed to present evidence that you genuinely intended to repay the charges when you made them. 

Can a Credit Card Company Challenge Your Discharge of Debts?

A creditor can also challenge dischargeability under a broader fraud provision. This applies to debt obtained through false pretenses, a false representation, or actual fraud.

Many courts have held that using a credit card may imply that you intend to repay the debt. If a creditor can show that you incurred charges through false pretenses, a false representation, or actual fraud, that specific debt could survive your bankruptcy.

These challenges require action on the part of the creditor. If no objection is raised by a creditor, even debt that technically falls within the luxury goods or cash advance windows typically gets discharged.

What Should You Do Before Filing for Bankruptcy in Texas?

Avoid making large purchases or taking cash advances in the months immediately before filing. Doing so risks triggering the fraudulent debt presumption.  

List every credit card account on your bankruptcy schedules, even those with a zero balance or that you have stopped using. Omitting a creditor can create significant legal complications and, in some circumstances, may affect whether that debt is discharged.

Avoid paying down one credit card significantly more than others in the months before filing. In some cases, payments that favor one creditor over others shortly before filing may be recovered by the bankruptcy trustee under the Bankruptcy Code's preference rules.

Call an Austin County, TX Bankruptcy Lawyer Today

Filing for bankruptcy offers the chance at a clean slate, but it’s best to talk to a professional before you file to be sure which debts will be discharged. 

The Fealy Law Firm, PC focuses on helping good people through hard times so they can get back to taking care of their finances. Board-certified in consumer bankruptcy law by the Texas Board of Legal Specialization, our Harris County, TX consumer debt attorney has helped thousands of people and businesses find real debt relief. 

Call The Fealy Law Firm, PC at 713-526-5220 to schedule your free consultation today.