Bankruptcy News: New Means Test Numbers Effective 11/1/12

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 hw@helenwallacelaw.com or by telephone to (937) 654-6800.

The contents contained in Helen Wallace, Attorney at Law’s Blog and Web Page(s) are for educational and informational purposes only, and shall not be construed as legal or tax advice. The reading of Helen Wallace, Attorney at Law’s Blog or Webpage does not create an attorney/client relationship with Helen Wallace, Attorney at Law. Please consult an Attorney in your jurisdiction (where you live or where the legal action arose) if you are seeking legal advice or representation. Please further be advised that Helen Wallace, Attorney at Law is a debt relief agency and helps people file for bankruptcy relief under the United States Bankruptcy Code.

Ratings and Reviews

OSBA Member
KBA Member
The National Advocates