To file for bankruptcy in Ohio, an individual must satisfy the eligibility requirements set forth in the Bankruptcy Code. There are two types of bankruptcy that an individual may file for in Ohio: Chapter 7 and Chapter 13.
To file for Chapter 7 bankruptcy, an individual must pass the "means test." This test compares the individual's income to the state median income for a household of the same size. If the individual's income is below the state median, they may be eligible to file for Chapter 7 bankruptcy. If their income is above the state median, they may still be eligible to file for Chapter 7 bankruptcy based on certain expenses and deductions.
To file for Chapter 13 bankruptcy, an individual must have a regular source of income and must have debts that fall within the statutory limits set by the Bankruptcy Code. Under Chapter 13, the individual enters into a repayment plan with their creditors to pay back all or a portion of their debts over a period of three to five years.
In addition to meeting the eligibility requirements for Chapter 7 or Chapter 13 bankruptcy, individuals must also complete mandatory credit counseling and debtor education courses. These courses must be completed from an approved provider and proof of completion must be filed with the court.
There are also certain limitations and exceptions to filing for bankruptcy in Ohio. For example, if an individual has previously filed for bankruptcy within a certain timeframe, they may be ineligible to file again. Additionally, certain debts such as student loans and taxes may not be dischargeable in bankruptcy.
If an individual is considering filing for bankruptcy in Ohio, it is recommended that they consult with a licensed bankruptcy attorney for guidance on their specific situation. The attorney can provide further advice on the eligibility requirements, limitations, and exceptions to filing for bankruptcy, as well as advise the individual on the best course of action.
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