Posted On: August 13, 2010
Ohio Median Income Guidelines: Do You Qualify to File Chapter 7?
Wondering if you qualify to file Chapter 7 Bankruptcy? The Bankruptcy Abuse and Consumer Protection Act put in place a test based on the median household income for your geographic location and family size. On or after March 15, 2010, the median family income guidelines for the State of Ohio are as follows: Family of One: $41,724; Family of Two: $52,030; Family of Three: $61,552; Family of Four: $73,040; *For cases filed on or after April 1, 2010, add $7,500 for each family member in excess of four. If your household income is below the median for the State of Ohio, then you will be eligible to file a Chapter 7. However, if you have enough disposable income left after paying your expenses, you could still be required to file a Chapter 13. If your income is above the Ohio median for your family size, it does not necessarily mean you cannot file Chapter 7. However, it does mean you will have to complete the second part of the means test as part of your bankruptcy filing. This is a complicated process and if you make a mistake your case can be dismissed or you may be required to convert to a Chapter13 repayment plan. Therefore, it is advisable to consult an experienced bankruptcy attorney that can help you with the process and help you to determine if you are eligible to file a Chapter 7. In our experience, we have found that the majority of our clients that are in need of a fresh start are eligible to file Chapter 7 under the means test. We have also found that for those who are not, a Chapter 13 bankruptcy will often greatly help their financial situation as it can stop foreclosure and drastically reduce the amount they pay to eliminate their credit card debt. Both Chapter 7 and Chapter 13 bankruptcies provide powerful remedies for those in need of financial help. Please feel free to contact our firm to see if bankruptcy is right for you.