Filing for bankruptcy in Ohio follows similar procedures as filing for bankruptcy anywhere else in the United States. If you're hoping to use Chapter 7 bankruptcy protection, you'll need to pass an Ohio-specific income test. Read on to learn how to file for Ohio bankruptcy.

All bankruptcy cases are heard in federal courts, so you'll need to begin your filing process in the court that oversees your county in Ohio. There are some Ohio-specific factors, however, such as the income levels needed to satisfy the Chapter 7 means test and the list of assets you are permitted to keep after declaring bankruptcy.

• 65% of all personal bankruptcies are filed under Chapter 7. This form of bankruptcy, also called liquidation or straight bankruptcy, allows you to walk away from your debts and make a fresh financial start. Under Chapter 7, any non-exempt assets are sold, and the proceeds are given to creditors to repay qualified debts in return for them forgiving the balance of the obligation. Some debts, such as taxes or students loans, are usually not eligible for Chapter 7 bankruptcy, and you'll need to continue prepaying them even after declaring bankruptcy.Bankruptcy Home: About Chapter 7 If you're not eligible for chapter 7 bankruptcy, you may be able to use Chapter 13 or Chapter 11.

1. In order to be eligible to use Chapter 7 bankruptcy in Ohio, your family income needs to be less than the median income for families in Ohio as determined by the Census Bureau. The income level is specific to your family's size.
   1. Household of one: $41,873http://bankruptcy.lawyers.com/consumer-bankruptcy/State-Median-Family-Income-by-Family-Size.html
   2. Household of two: $52,216http://bankruptcy.lawyers.com/consumer-bankruptcy/State-Median-Family-Income-by-Family-Size.html
   3. Household of three: $61,772http://bankruptcy.lawyers.com/consumer-bankruptcy/State-Median-Family-Income-by-Family-Size.html
   4. Household of four: $73,301http://bankruptcy.lawyers.com/consumer-bankruptcy/State-Median-Family-Income-by-Family-Size.html
2. If you don't qualify under the median income test, you may still be able to elect Chapter 7 bankruptcy in Ohio if you satisfy a disposable income test which takes into account your mortgage and vehicle payments, and the cost of living to determine how much you can afford to pay your creditors.
   1. If the amount of income left over exceeds $182.50 per month you are ineligible for Chapter 7.
   2. If the amount of income left over exceeds $110 per month and you owe less than $440 to unsecured creditors, you're ineligible for chapter 7.
   3. If the amount of income left over is less than $110 per month you can file for Chapter 7 in Ohio.

• Certain assets will be exempt from liquidation under Chapter 7 bankruptcy. For example, if you have less than $5,000 in equity in your home, you can declare a homestead exemption, and keep the house, as long as you can continue to make your mortgage payments. Certain other assets, such as a burial plot and some personal and business items are also exemptLawyers.com: Bankruptcy in Ohio

There are two U.S. District Courts in Ohio that hear bankruptcy cases.Personal Bankruptcy Information: Ohio Courts

1. The Northern Ohio District Court deals with bankrupts in the counties of Allen, Ashland, Ashtabula, Auglaize, Carroll, Columbiana, Crawford, Cuyahoga, Defiance, Erie, Fulton, Geauga, Hanckock, Hardin, Henry, Holmes, Huron, Lake, Lorain, Lucas, Mahoning, Marion, Medina, Mercer, Ottawa, Paulding, Portage, Putnam, Richland, Sandusky, Seneca, Stark, Summit, Trumbull, Tuscarawas, Van Wert, Wayne, Williams, Woods and Wyandot.Personal Bankruptcy Information: Ohio Courts http://www.ohnb.uscourts.gov/
2. The Southern Ohio District Court deals with bankrupts in the counties of Adams, Athens, Belmont, Brown, Butler, Champaign, Clark, Clermont, Clinton, Coschocton, Darke, Delaware, Fairfield, Fayette, Franklin, Gallia, Greene, Guernsy, Hamilton, Harrison, Highland, Hocking, Jackson, Jefferson, Knox, Lawrence, Licking, Logan, Madison, Meigs, Miami, Monroe, Montgomery, Morgan, Morrow, Muskingum, Noble, Perry, Pickaway, Pike, Preble, Ross, Scioto, Shelby, Union, Vinton, Warren and Washington.Personal Bankruptcy Information: Ohio Courts http://www.ohsb.uscourts.gov/

The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.