When your debt begins to become overwhelming and you have exhausted all possible options, you may turn to bankruptcy to help alleviate how much you owe. However, it’s important to understand that your income can impact what form of bankruptcy you can file. As such, the following blog explores the income limits so you can best prepare for this process. In addition, you’ll learn the importance of working with Franklin County bankruptcy lawyers to assist you through these difficult times, so you can seek the best possible outcome for your circumstances.
Does Ohio Have Income Limits for Bankruptcy?
When you file for bankruptcy, it’s important to understand that your income will impact which Chapter you are able to file. Typically, if you wish to file Chapter 7, you will need to pass the means test. This essentially compares your past six months of income against other households of your size in Ohio. As such, there is no standardized limit for Chapter 7. As of 2025, the median monthly income for a household of four in Ohio was $9,991.42. If you earn less than this, you will likely automatically qualify for this Chapter.
However, if your income is higher than the median, you can deduct certain expenses to assist you in qualifying. Essentially, this will help reduce your income by including the cost of certain expenses, like your rent or mortgage payments, court-ordered family payments, overdue taxes, and different insurances.
Chapter 13, on the other hand, does not have an income limit. As such, you may pursue bankruptcy regardless of how high your monthly earnings are.
What If My Income Is Too High for Chapter 7?
If your income exceeds the median income for your state after subtracting eligible deductions, you will be unable to pursue Chapter 7 bankruptcy. However, you can still file a Chapter 13 case.
Chapter 7 bankruptcy is typically shorter and less expensive, though it can put your assets at risk, as this process involves the liquidation of non-exempt assets to repay creditors. Chapter 13, however, is a longer, more expensive process as you will be required to begin a three to five-year monthly repayment plan. You will not be subject to the liquidation of your assets, however.
Filing for bankruptcy can be an incredibly overwhelming process, and unfortunately, making errors can drastically impact the outcome of your case. As such, it is in your best interest to enlist the assistance of an experienced attorney to guide you through this process. At Cousino & Weinzimmer LLC, our firm understands the impact that debt can have on your life, which is why we are committed to helping you seek the best possible outcome for your circumstances. When you need help, our firm is here. Contact us today to learn more.
