About Ohio Bankruptcy Rules

If you've lived in Ohio for at least 180 days and cannot keep up with your debts, you might decide to file for debt relief with your local bankruptcy court. Most Ohio residents who file bankruptcy choose for permanent forgiveness of eligible debts through Chapter 7 or repay some of their bills over a three- to five-year period under Chapter 13.

Chapter 7 vs. Chapter 13 Income

If you make more than Ohio's median income level, then you might have to repay a portion of your bills under Chapter 13, according to the book "How to File for Chapter 7 Bankruptcy." However, if you can prove through a federal means test that you cannot pay your consumer debts and keep up with reasonable household expenses, you might still be able to pursue Chapter 7. As of 2010, the median annual income for a single Ohio resident was $41,873, according to the U.S. Trustee Program. Two-member households could earn up to $52,216 each year, three-member families could bring in as much as $61,772 annually and four-member households could earn up to $73,301 a year and still qualify to file Chapter 7 in Ohio.

Once you declare any type of personal bankruptcy, you'll receive a notice of your required 341 meeting, according to the United States Bankruptcy Court Southern District of Ohio website. If you don't attend this meeting, usually held about 30 to 50 days after you declare insolvency, your case will be dismissed. During a 341 meeting, creditors can exercise their federal right to object to your bankruptcy proceeding. However, creditor objections, during 341 meetings in Ohio, are very rare and usually reserved for those who might be guilty of hiding assets or lying on a credit application.

Your court costs do not include any costs for legal representatives, such as attorneys or paralegals that you choose to hire, according to the United States Bankruptcy Court Southern District of Ohio website. As of 2010, Ohio bankruptcy courts charge citizens $274 to file Chapter 13 and $299 to pursue a Chapter 7 case. A few debtors might qualify for an installment payment plan. However, all fees must be fully remitted before the end of your bankruptcy case; Ohio bankruptcy courts can only accept checks and credit cards from attorneys in good standing.