Bankruptcy Means Test Attorneys In Northeast Ohio

Debt can make every day feel heavier than the last. Debra Booher & Associates Co., LPA, understands that weight. We are a Northeast Ohio bankruptcy firm that works exclusively on complex financial situations. You get personal, one-on-one attention from an experienced attorney who will be honest about your options.

What Is The Ohio Bankruptcy Means Test?

Ohio courts use the means test to screen Chapter 7 applicants before approving a case. The calculation takes your household income and holds it against Ohio’s reported median income for a household of your size.

Every Chapter 7 filer in Ohio completes this test. Income at or below the median means you pass the means test, while income above it triggers a second calculation step.

The Bankruptcy Means Test Calculator And Ohio Income Limits

The means test works in two steps. Here is what each one involves:

• Step 1, income comparison: To establish your income figure, the court pulls your earnings from the six months before your filing date and calculates a monthly average to measure against Ohio’s median. Income at or below that threshold means you qualify and the test is complete.
• Step 2, expense deduction: If your income is above the median, the court deducts allowable expenses, including housing, food and healthcare. A disposable income figure below that legal threshold means Chapter 7 can still be available to you.

Ohio updates its income limits periodically, and an attorney at Debra Booher & Associates Co., LPA, can confirm the current figures and apply them to your case.

What Happens If You Fail The Bankruptcy Means Test?

If the expense deduction calculation still shows disposable income above the legal threshold, the U.S. trustee may file a motion to dismiss the case as abusive. However, you may still qualify for Chapter 7 by showing special circumstances.

Chapter 13 is often the next step, letting you repay a portion of your debt over three to five years through a court-approved plan.

Get An Honest Assessment From A Dedicated Bankruptcy Attorney

You came here looking for answers, and we are here to help. Debra Booher & Associates Co., LPA, never recommends bankruptcy unless it is the right move for your situation. Call our office at 888-542-1300 or message us online to schedule your consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.