Dayton Bankruptcy Attorney Helen Wallace Explains the New Bankruptcy Means Test Numbers Effective in Ohio Beginning 11/1/12:
Personal bankruptcy is designed for people with financial problems that make it difficult for them to pay their existing debts. People whose debts are primarily consumer debts are subject to a means test designed to determine whether their case should proceed under a chapter 7 bankruptcy (liquidation) or 13 bankruptcy (repayment of some or all of their debts). If a person’s income is less than the median income for his or her state of residence and family size, they may file a Chapter 7 without further analysis. In Ohio, the median income for a family of four is currently $72, 827. Therefore, if a family of four makes less than this amount, they may be eligible to file a Chapter 7 bankruptcy. If a family of four makes more than this amount, they may still be able to file a Chapter 7 bankruptcy, but further analysis by your Dayton bankruptcy attorney will be necessary. The means test allows deductions for certain expenses, such as a debt secured by property (i.e., cars, mortgages, etc.), so over-median families or individuals can still often qualify for a Chapter 7 bankruptcy.
Beginning November 1, 2012, under Ohio’s means test the median income for a family of four will be $72,764, representing a small decrease in the amount a family of four can earn and still qualify for a Chapter 7 bankruptcy. The median income threshold for a family of three under the Ohio bankruptcy means test will also decrease from the current $60,219 to $59,724. The median income for a family of two under the Ohio means test will increase slightly from $51,839 to $52,139, as will the median income for an individual, from $41,748 to $41,946.
To learn more about bankruptcy, or to discuss your personal financial situation with an experienced Dayton bankruptcy attorney , please contact your Dayton bankruptcy attorney today at Helen Wallace, Attorney at Law by clicking on the preceding link, by e-mail to email@example.com or by telephone to (937) 654-6800.
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