Ohio bankruptcy runs on the federal Bankruptcy Code, but with two wrinkles that shape every case filed here: Ohio requires you to use state exemptions instead of the federal set, and those exemption amounts were raised in April 2025. Most individuals choose between Chapter 7, which discharges qualifying debts in about four to six months, and Chapter 13, which restructures debts into a three- to five-year repayment plan supervised by the court.
Chapter 7: Liquidation and Discharge
Chapter 7 is the faster path. A court-appointed trustee reviews your assets, sells anything not protected by an exemption, and distributes the proceeds to creditors. In return, most unsecured debts, including credit cards, medical bills, and personal loans, are discharged. Straightforward cases close in four to six months.
Qualifying starts with the means test. Your average monthly income over the six months before filing is compared to the median income for an Ohio household of your size. For cases filed in early 2026, the Ohio medians are $64,541 for one earner, $81,578 for two, $99,876 for three, and $120,531 for four, with $11,100 added for each additional person.1U.S. Trustee Program. Census Bureau Median Family Income By Family Size Income below the applicable figure generally clears you for Chapter 7.
Income above the median does not automatically disqualify you. A second calculation subtracts allowable living expenses from your income to see whether you have enough left over to fund a repayment plan. Those expense allowances come from IRS Collection Financial Standards, with national figures for food, clothing, and personal care and local figures for housing, utilities, and transportation that vary by county.2U.S. Trustee Program. Means Testing Only if disposable income after those deductions still exceeds the threshold does the court presume Chapter 13 is the right fit.
Chapter 13: Repayment Plan
Chapter 13 keeps your property. You propose a monthly payment plan, send the money to a trustee, and the trustee distributes it to creditors on a priority schedule. If your income is below Ohio’s median, the plan runs three years. Above the median, it runs five. No plan can exceed five years.3United States Courts. Chapter 13 – Bankruptcy Basics
Chapter 13 is the tool for people behind on a mortgage or car loan. It lets you catch up on missed payments over the life of the plan while staying current on new ones, which stops a foreclosure or repossession that Chapter 7 would only delay. Complete every plan payment and any remaining eligible unsecured debt is discharged at the end. Fall behind, and the case can be dismissed.
What You Keep: Ohio Exemptions
Ohio opted out of the federal exemption system. Under Ohio Revised Code 2329.662, Ohio filers must use the state’s exemptions.4Ohio Legislative Service Commission. Ohio Revised Code 2329.662 – Inapplicability of Federal Bankruptcy Exemptions The amounts below took effect April 1, 2025, and apply through March 31, 2028.5United States Bankruptcy Court. April 1, 2025, Ohio Exemption Increases
- Homestead: up to $182,625 in equity in your primary residence.
- Motor vehicle: up to $5,025 in equity in one car.
- Household goods: up to $800 per item and $16,850 total.
- Jewelry: up to $2,125.
- Wildcard: up to $1,675 in any property you choose.
- Cash and bank accounts: up to $400 in cash on hand, deposits, money owed to you within 90 days, and tax refunds.
The cash exemption catches people off guard. With $3,000 in checking on the filing date, only $400 is automatically protected; stacking the $1,675 wildcard on top helps, but anything above that combined amount can go to the trustee.6Ohio Legislative Service Commission. Ohio Revised Code 2329.66 – Exempted Interests and Rights Tax refunds work the same way. Filing in February with a large refund pending is one of the most common ways people lose money they did not expect to lose.
Married couples filing jointly can double every exemption, because federal law applies each exemption separately to each spouse in a joint case.7Office of the Law Revision Counsel. 11 USC 522 – Exemptions A couple can protect up to $365,250 in home equity and $10,050 in a single vehicle.
Employer-sponsored retirement plans such as 401(k)s and pensions are fully exempt under federal law regardless of balance. Traditional and Roth IRAs are protected up to $1,711,975 per person, a cap adjusted in April 2025.8Federal Register. Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases For most filers, retirement savings are safe.
Debts Bankruptcy Will Not Erase
Several categories of debt survive both Chapter 7 and Chapter 13 discharge:
- Child support and alimony.
- Most recent income tax debts. Older tax debt can sometimes be discharged if the return was due more than three years ago, was filed more than two years ago, and the tax was assessed more than 240 days before filing.
- Student loans, unless you prove in a separate adversary proceeding that repayment would cause “undue hardship.” The standard is strict and most filers do not meet it.
- Debts obtained through fraud or intentional misrepresentation.
- Debts for death or personal injury caused by operating a vehicle while intoxicated.
- Debts for willful and malicious injury to another person or their property.
- Criminal restitution and most government-imposed fines and penalties.
- Debts owed to a creditor you failed to list on your paperwork.
Costs and What You Must Do Before Filing
Within 180 days before filing, you have to complete a credit counseling course from a provider approved by the U.S. Trustee Program and submit the certificate with your petition. Skip it and the court will dismiss your case.10United States Department of Justice. Credit Counseling and Debtor Education Information These courses run about $25 to $50, with waivers available for people who cannot afford them. A second course, debtor education, must be completed after filing or the court will not grant a discharge.11United States Courts. Credit Counseling and Debtor Education Courses
The core document is Official Form 101, the Voluntary Petition for Individuals Filing for Bankruptcy, filed with detailed schedules of every asset, every creditor, your income, and your monthly expenses.12United States Courts. Voluntary Petition for Individuals Filing for Bankruptcy You will also submit recent pay stubs, tax returns, and bank statements. Everything is signed under penalty of perjury, so an omitted asset or creditor can cost you your discharge or, in extreme cases, bring criminal charges.
Filing fees are $338 for Chapter 7 and $313 for Chapter 13.13United States Bankruptcy Court. Northern District of Ohio – Filing Fees Installment payments are available in some cases, and Chapter 7 filers with income below 150% of the poverty line can apply to have the fee waived. Attorney fees are separate and typically run $1,200 to $2,500 for a straightforward Chapter 7 and $2,500 to $5,000 for Chapter 13. Chapter 13 attorney fees are often paid through the repayment plan rather than upfront.
The Automatic Stay
Ohio has two federal judicial districts handling bankruptcy, Northern and Southern, each with multiple court locations. You file in the district where you live. The moment the petition is filed, the automatic stay takes effect and stops most collection activity: lawsuits, wage garnishments, foreclosures, repossessions, and creditor calls all have to stop.14Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay
The stay has limits. It does not stop criminal proceedings, collection of child support or alimony, or tax audits and notices of deficiency. If a prior bankruptcy case was dismissed within the past year, the stay in a new case expires after 30 days unless the court extends it. With two dismissed cases in the past year, the stay does not take effect at all.
A few weeks after filing, the trustee holds the Meeting of Creditors, known as the 341 meeting, where you answer questions under oath about your finances. Creditors rarely attend; the meeting usually runs 10 to 15 minutes.15United States Department of Justice. Section 341 Meeting of Creditors
Dismissal and the 180-Day Refile Bar
A discharge erases eligible debts for good. A dismissal closes the case without erasing anything, and creditors resume collection where they left off. Dismissals happen more often than people expect, usually for missed paperwork: no credit counseling certificate, missing documents, no-show at the 341 meeting, unpaid filing fees, or missed Chapter 13 plan payments. Fraud or abuse, such as hiding assets or running up debt right before filing, can also lead to dismissal.
Dismissal can carry a 180-day refile bar. If the court dismissed the case because you willfully failed to follow court orders or appear, or if you voluntarily dismissed after a creditor filed a motion to lift the automatic stay, you cannot file again for six months.16Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor Those six months without bankruptcy protection give creditors a wide-open window.
Transfers Before Filing
Transferring property to a friend or relative, selling an asset for far less than it is worth, or paying one creditor while ignoring others shortly before filing can be undone by the trustee. Federal law allows a two-year lookback from the filing date for fraudulent or preferential transfers. Where state law provides a longer lookback, the trustee can use that instead, and some states allow four to six years. Giving a car to a relative six months before filing or paying a family member back $10,000 while a credit card goes unpaid are exactly the transactions trustees look for. Recovered assets go into the bankruptcy estate for distribution to all creditors.
Waiting Periods for a Second Filing
You can file more than once, but the waiting periods between discharge-eligible filings are strict and run from the filing date of the earlier case, not the discharge date:
- Chapter 7 after Chapter 7: 8 years.17Office of the Law Revision Counsel. 11 USC 727 – Discharge
- Chapter 13 after Chapter 7: 4 years.
- Chapter 7 after Chapter 13: 6 years, unless you paid 100% of claims or at least 70% in a good-faith best effort.
- Chapter 13 after Chapter 13: 2 years.
Filing before the waiting period expires does not necessarily stop a new case from opening, but the court will deny the discharge, which defeats the purpose.
Credit After Bankruptcy
A Chapter 7 bankruptcy can stay on your credit report for up to 10 years from the filing date. A completed Chapter 13 drops off after 7 years.18Central District of California United States Bankruptcy Court. Credit Report, How Do I Get A Bankruptcy Removed From My Report? The initial score drop is often 150 to 250 points. Rebuilding is routine: a secured credit card used for small purchases and paid in full each month, on-time payments on any surviving debts, and low utilization on new credit. Most people see meaningful score improvement within two to three years of discharge. FHA and VA mortgages can be available as soon as two years after a Chapter 7 discharge, and as early as 12 months into a Chapter 13 plan with court approval and a record of on-time payments. Conventional mortgages generally require four years after Chapter 7 and two years after Chapter 13 discharge.