What is the “Means Test” in Ohio Bankruptcy?

When we talk about filing for Chapter 7 bankruptcy in central and Columbus, Ohio, the means test is often the first thing to come to mind when it comes to your eligibility for filing. But what is the means test and how can you apply it to your Ohio Chapter 7 bankruptcy?

The Ohio Bankruptcy Means Test

The Ohio bankruptcy Means Test applies to those filing for Chapter 7 bankruptcy who have a higher income than the median income of those similar size households. If your household income is below the Ohio median, you need not complete a means test and can continue your Chapter 7 filing.

If you are required to complete the test, you will need to determine the portion of unsecured debts you can pay back through a Chapter 13 filing. Because the main component of this test is the median income, it is imperative to understand how that number is determined.

The median household income is determined by averaging your monthly income over six months. Then, multiply that number by 12 to determine annual income for the Ohio income test. This number is not a one size fits all. It greatly depends on how many people are in the household, too.

In 2021, the following is the annual income for the Ohio bankruptcy Means Test threshold of eligibility.

Your monthly income includes all sources of income like a business, rental, investments, pensions, unemployment, etc.


Once you understand your income, you need to understand how to gather expenses as well. In order to show your eligibility under the Ohio Means Test for Chapter 7 bankruptcy, you need to supply your monthly expenses based upon national, local, and state averages and standards from the Census Bureau and IRS. You can also include obligations you must pay like child/spousal support and health expenses.

Once you review your income and expenses, you can determine your eligibility for Chapter 7 bankruptcy in Ohio.

Who is exempt?

There are some groups that are exempt from the test. This includes disabled veterans who have incurred debt primarily during active duty or performing a homeland defense activity.

Filing for bankruptcy in Ohio can be complicated when you handle it alone. But you don’t have to.

Chapter 7 Ohio Bankruptcy Means Test Eligibility: The Jones Law Firm

If you have questions about the Chapter 7 bankruptcy process including the Ohio Means Test, do not hesitate to contact The Jones Law Firm LLC., today. We can go over the bankruptcy process and review your income and expenses to determine if a Chapter 7 filing is right for you. With offices in Reynoldsburg, Ohio, The Jones Law Firm works with clients in and around Columbus and throughout central Ohio. Contact us today for a free consultation.