What is the Ohio bankruptcy means test?

The Ohio bankruptcy means test determines your eligibility to file for Chapter 7 bankruptcy when your annual household income exceeds the median income for a household of similar size in Ohio. The means test allows you to prove to the court that your disposable income cannot satisfy a repayment plan under Chapter 13 bankruptcy.

Under the means test, you add up all your sources of income, including wages, business
income, interest and dividends, pension, retirement benefits, alimony, child support, workers’ compensation and unemployment benefits. You then subtract allowable expenses from your average monthly income, such as housing costs, transportation costs, food, utilities, health insurance, and out-of-pocket medical costs.

If your monthly income for the next 60 months will not exceed $7,475, you pass the means test. If it exceeds $12,475, you fail the means test. If your monthly income falls between these amounts, you’ll need to calculate whether you have sufficient income to pay at least 25 percent of your unsecured debts over the next five years.