To file Chapter 7 bankruptcy in Ohio, your household income generally has to fall below the state median for a household your size. For cases filed on or after April 1, 2026, a single filer qualifies with annual gross income below $66,239, and a four-person household qualifies below $123,702.1U.S. Trustee Program. Census Bureau Median Family Income By Family Size Earning more than that doesn’t automatically shut you out; it just moves you into a longer calculation called the means test, which looks at whether you have enough disposable income to repay creditors.
Ohio Median Income Thresholds
For Chapter 7 cases filed on or after April 1, 2026, the Ohio thresholds are:1U.S. Trustee Program. Census Bureau Median Family Income By Family Size
- One earner: $66,239
- Two people: $83,725
- Three people: $102,504
- Four people: $123,702
- Each additional person beyond four: add $11,100
If your annualized income sits below the number for your household size, you satisfy the income requirement and skip the means test entirely. This is how most people who qualify actually qualify.
The figures shift. The U.S. Trustee Program updates them roughly twice a year, with new numbers typically taking effect for cases filed on or after April 1 and November 1.2United States Department of Justice. Means Testing For cases filed between November 1, 2025 and March 31, 2026, a single Ohio filer’s threshold is $64,541.3U.S. Trustee Program. Census Bureau Median Family Income By Family Size Check the current figures on the U.S. Trustee Program website before you file.
What Counts as Income
The income figure you compare against the median isn’t your current salary. It’s your “current monthly income,” defined by the Bankruptcy Code as the average of all gross income you received during the six full calendar months before your filing date, multiplied by twelve.4Office of the Law Revision Counsel. 11 USC 101 Definitions
Nearly everything goes into that average. Wages, salary, overtime, commissions, business profits, rental income, pension payments, unemployment benefits, and regular financial contributions from anyone living with you all count, even if that person isn’t filing.4Office of the Law Revision Counsel. 11 USC 101 Definitions
A few categories don’t count. Social Security benefits are excluded regardless of amount, along with payments to victims of war crimes or terrorism and certain military disability compensation.4Office of the Law Revision Counsel. 11 USC 101 Definitions For retirees living mostly on Social Security, that single exclusion often decides eligibility.
The six-month lookback also means timing matters. If you lost a job three months ago, half of the window shows reduced or zero income and pulls your average down. People with seasonal or commission-based earnings sometimes benefit from waiting until high-earning months drop out of the window.
If you’re married but filing alone, your non-filing spouse’s income still goes into the initial calculation. The means test form then allows a marital adjustment: you can subtract the portion of your spouse’s income that doesn’t go toward your household expenses, such as their separate debts, personal car payments, retirement contributions, or taxes.5United States Courts. Official Form 122A-2 – Chapter 7 Means Test Calculation That adjustment can bring a household back below the median even when the raw combined income exceeds it.
Getting Household Size Right
The threshold that applies to you depends on how big your household is, and the Bankruptcy Code doesn’t define “household.” Courts have taken different approaches. The “heads on beds” method counts everyone living in the home as their primary residence, contributor or not. The “economic unit” method counts only people whose finances are genuinely intertwined with yours.
The gap between the two can matter a lot. A single parent with two children and an elderly parent in the home is a household of four under heads-on-beds, which raises the applicable median from $102,504 to $123,702. Under the economic unit test, the elderly parent might not count if they keep separate finances. Ohio bankruptcy courts haven’t settled uniformly on one approach, so the standard applied in your case can depend on the judge and trustee assigned.
Children in joint custody are a common flashpoint. If a child spends roughly half their time with you, whether they count depends on the methodology in play. Keep your documentation of living arrangements consistent across the filing.
If You’re Above the Median
Earning above the Ohio median doesn’t disqualify you. It triggers a longer calculation on Official Form 122A-2 that tests whether you have enough disposable income to repay a meaningful share of your debts over five years.6United States Courts. Official Form 122A-2 – Chapter 7 Means Test Calculation
The form starts from your current monthly income and subtracts a series of allowed deductions. Many aren’t your actual bills. IRS National Standards set fixed monthly amounts for food, clothing, housekeeping supplies, personal care, and miscellaneous items based on household size.7Internal Revenue Service. National Standards Food, Clothing and Other Items A separate allowance covers out-of-pocket healthcare, currently $84 per month for people under 65 and $149 for those 65 and older.8Internal Revenue Service. National Standards Out-of-Pocket Health Care
Housing, utilities, and transportation come from IRS Local Standards, which vary by county for housing and by metropolitan area for vehicles. A filer in rural Appalachia gets a different number than one in Columbus or Cleveland. On top of the standardized amounts, you can deduct certain actual expenses, including mandatory payroll taxes, health insurance premiums, court-ordered payments, and secured debt payments such as your mortgage and car loan.
After the deductions, whatever’s left each month is multiplied by 60. If that five-year total comes in below the lesser of 25 percent of your nonpriority unsecured debts (with a floor of $10,275) or $17,150, no presumption of abuse arises and you pass.9Office of the Law Revision Counsel. 11 USC 707 Dismissal of a Case or Conversion In practice, if your monthly disposable income after deductions is below roughly $171, you pass regardless of unsecured debt. Between about $171 and $286, it depends on how much unsecured debt you carry. Above $286 per month, the presumption of abuse kicks in.
If the calculation triggers that presumption, you can try to rebut it by showing “special circumstances” the standard formula doesn’t capture. The Bankruptcy Code names a serious medical condition and a call to active military duty as examples.9Office of the Law Revision Counsel. 11 USC 707 Dismissal of a Case or Conversion You have to show no reasonable alternative to the extra expenses or income adjustments you’re claiming, and each one needs itemized documentation.
When the Income Test Doesn’t Apply
Some filers skip the income comparison and means test entirely.
The means test applies only when a filer’s debts are “primarily” consumer debts. If more than half your total debt comes from a business venture, such as failed business loans, commercial leases, or vendor obligations, you’re exempt from the means test regardless of your income.10United States Courts. Chapter 7 – Bankruptcy Basics
Two military exemptions also exist. Disabled veterans whose debts were incurred primarily during active duty or while performing a homeland defense activity are fully exempt from means testing.9Office of the Law Revision Counsel. 11 USC 707 Dismissal of a Case or Conversion National Guard members and reservists called to active duty after September 11, 2001 for at least 90 days are exempt during their service and for 540 days after returning to civilian life. Either exemption requires filing Official Form 122A-1Supp with supporting documentation such as discharge papers or VA disability determinations.11United States Courts. Official Form 122A-1Supp – Statement of Exemption from Presumption of Abuse Under 11 USC 707(b)(2)
If Your Income Is Too High
When income disqualifies you from Chapter 7 and you can’t rebut the presumption of abuse, Chapter 13 is the main alternative. Instead of discharging debts outright, it puts you on a court-approved repayment plan. Below-median filers get a three-year plan; above-median filers generally get five years.12United States Courts. Chapter 13 – Bankruptcy Basics
Chapter 13 has its own limits. For cases filed between April 1, 2025 and March 31, 2028, secured debts can’t exceed $1,580,125 and unsecured debts can’t exceed $526,700. You also need enough regular income to fund the plan. For filers with significant home equity, non-exempt assets, or debts Chapter 7 wouldn’t discharge, Chapter 13 can be the better tool even when Chapter 7 is available.