What Are the Ohio Means Test and Median Income Standards for Bankruptcy?
The Ohio Means Test determines whether you qualify for Chapter 7 bankruptcy. Pass, and the court can wipe out your credit card balances, medical bills, and other unsecured debts in about four months. Fail, and you are looking at a three-to-five-year repayment plan under Chapter 13 instead.
The test is not complicated once you understand what the court is actually measuring. It compares your household income against what typical Ohio families earn, then examines whether your necessary living expenses leave you with enough money to pay back creditors.
Legal Concepts
- Ohio residents must complete Form 122A-1 to compare their six-month average income against the state median for their household size.
- Single-person households in Ohio must earn below $63,553 annually to pass the first step of the test automatically.
- Those who exceed the median income may still qualify for Chapter 7 by completing Form 122A-2, which subtracts IRS-approved living expenses from income.
- Allowed deductions include IRS National Standards for food and clothing, IRS Local Standards for housing and transportation based on your Ohio county, and actual costs for taxes, insurance, and child support.
- Disabled veterans, certain military members, and those with primarily business debt may be exempt from the means test entirely.
- Failing the means test does not eliminate your options—Chapter 13 provides an alternative path to discharge remaining debt after a repayment period.
The Official Bankruptcy Forms You Will File
Every Chapter 7 case in Ohio runs through a series of federal bankruptcy forms known collectively as the 122A forms. Knowing what they are and what they measure helps you understand exactly what the court is asking for and why certain information matters.
Form 122A-1: Chapter 7 Statement of Your Current Monthly Income
This is your starting point. Form 122A-1 asks for the gross income of everyone in your household over the last six full calendar months before you file. The court takes that total, divides by six to get your average monthly income, then multiplies by twelve to annualize it.
That annual figure gets compared to Ohio’s median income for a family of your size. If your annualized income falls below the median, you pass immediately. Check a box indicating no presumption of abuse applies, sign the form, and proceed with your Chapter 7 case without any further income analysis.
If your income exceeds the median, the form flags a presumption of abuse. That phrase sounds alarming, but it simply means the court presumes you might have enough money to pay your creditors and wants to examine your expenses more closely.
Form 122A-1 Supp: Statement of Exemption from Presumption of Abuse
Some people skip the full means test entirely regardless of how much they earn. Form 122A-1 Supp determines whether you qualify for one of these exemptions. You may be exempt if more than half your total debt comes from a failed business rather than personal spending.
You may also be exempt if you are a disabled veteran whose debts arose primarily during active duty, or if you are a National Guard or Reserve member who served at least 90 days on active duty after September 11, 2001.
Form 122A-2: Chapter 7 Means Test Calculation
This seven-page form is the means test itself. If your income exceeds Ohio’s median and you do not qualify for an exemption, Form 122A-2 determines whether you can still file for Chapter 7 by examining your expenses in detail.
You will enter IRS National Standards, IRS Local Standards based on your Ohio county, and your actual expenses for costs like payroll taxes and health insurance. The math either confirms or rebuts the presumption of abuse.
Current Median Income Standards in Ohio
The median income figures come from the U.S. Census Bureau and are updated periodically to reflect changes in the economy. As of 2024, the thresholds for Ohio households are:
- Single-person household: $63,553
- Two-person household: $79,881
- Three-person household: $95,786
- Four-person household: $117,144
- Each additional person: Add $9,900
These figures represent gross income before any taxes or deductions come out of your paycheck. If your six-month average, multiplied by twelve, falls below the number for your household size, you pass the first step and can file for Chapter 7 without completing Form 122A-2.
Counting household size correctly matters. You include yourself, your spouse if you are married and living together, and any dependents you support financially.
If you provide more than half the support for an elderly parent living with you, that parent typically counts toward your household size, which raises your median income threshold and may help you qualify.
How the Means Test Calculation Works
If your income exceeds Ohio’s median for your household size, Form 122A-2 determines whether you can still qualify for Chapter 7. The calculation subtracts allowed living expenses from your current monthly income to see what remains. That remainder is your disposable income—the amount the court believes you could pay toward your debts each month.
Step 1: Establish Your Current Monthly Income
Add up the gross income for everyone in your household over the six full calendar months before your filing date. Divide that total by six. This figure is your current monthly income for means test purposes, regardless of what you are earning right now.
Step 2: Compare to the Ohio Median
Multiply your current monthly income by twelve to annualize it. If the result falls below the median for your household size, you pass and do not need to continue with Form 122A-2. If the result exceeds the median, you proceed to the expense deductions.
Step 3: Deduct IRS National Standards
The IRS sets uniform national allowances for basic living costs based on household size. These cover food, clothing, housekeeping supplies, personal care products, and out-of-pocket healthcare expenses. You claim these amounts regardless of what you actually spend—they are automatic deductions.
Step 4: Deduct IRS Local Standards
Housing, utilities, and transportation costs vary by location. The IRS publishes county-level allowances for Ohio that reflect regional differences in the cost of living.
Urban counties like Franklin, Cuyahoga, and Hamilton have higher housing allowances than rural Appalachian counties. You claim the allowance for your county and household size, plus transportation costs based on whether you own or lease vehicles.
Step 5: Deduct Actual Necessary Expenses
Certain costs cannot be standardized because they depend on your specific circumstances. These include payroll taxes withheld from your wages, mandatory health insurance premiums, term life insurance, court-ordered child support or alimony, required childcare expenses, and ongoing payments for secured debts like car loans.
You deduct what you actually pay for these categories.
Step 6: Calculate Monthly Disposable Income
Subtract your total deductions from your current monthly income. The result is your monthly disposable income—what the court considers available to pay creditors.
Step 7: Apply the 60-Month Test
Multiply your monthly disposable income by sixty. If that five-year total falls below approximately $9,075, you pass the means test outright. If it exceeds approximately $15,150, you fail and must pursue Chapter 13 unless special circumstances apply.
Amounts between those thresholds require additional analysis comparing your disposable income to your total unsecured debt.
Why the Second Step Exists
The expense deductions on Form 122A-2 exist because gross income does not reflect financial reality. Someone earning above the median may still have no meaningful ability to repay creditors after accounting for housing costs in an expensive county, ongoing medical treatment, child support obligations, or payments on a vehicle needed for work.
The second step separates those who are choosing not to pay from those who genuinely cannot.
- Also read: The Best Effort Requirement in Chapter 13 Bankruptcy: All You Should Know
Documentation You Will Need
The court requires proof for every number you enter on your bankruptcy forms. Gathering these documents before you start makes the process smoother and helps avoid delays.
- Pay stubs covering six full months for everyone in your household
- Federal and state tax returns for the last two years
- Bank statements showing deposits and spending patterns
- Proof of childcare expenses, child support orders, or medical bills
- Valuations or loan statements for your home and vehicles
- Records of any other mandatory expenses you claim
Incomplete information can delay your case or result in dismissal. Taking time to collect thorough records shows the court you are approaching your financial recovery seriously.
FAQs
Does child support count as income for the means test?
Yes. Child support and alimony you receive count toward your six-month average income. However, child support you pay out is an allowed deduction on Form 122A-2, which reduces your disposable income calculation.
What if my income is just slightly over the median?
You complete the full means test on Form 122A-2. Many people who are marginally over the median still pass because deductions for housing, taxes, and healthcare bring their disposable income below the threshold.
Can I file for bankruptcy if I am currently unemployed?
Unemployment often makes passing easier because your six-month average income drops significantly. As long as you can demonstrate how you are meeting basic needs, not having a job is not a barrier to seeking relief.
Do I have to count my roommate’s income?
Generally no, unless you share bank accounts or split major household expenses. A roommate who pays their own rent and bills separately does not affect your household income calculation.
Does Social Security income count toward the means test?
No. Social Security benefits are specifically excluded from the means test under federal law. This makes qualifying for Chapter 7 significantly easier for seniors and people with disabilities.
What happens if I fail the means test?
Failing does not leave you without options. Most people who cannot qualify for Chapter 7 file Chapter 13 instead. You create a repayment plan lasting three to five years based on your disposable income. At the end of the plan, the remaining dischargeable debt is wiped out.
Finding Your Path with an Ohio Bankruptcy Attorney
If you are struggling to understand how these rules apply to your finances, Amourgis & Associates, Attorneys at Law are here to help. Our firm focuses on providing real solutions to people facing real problems.
We explain the math in plain English so you can make an informed choice about your future.
We serve clients throughout Ohio with offices in Akron, Cincinnati, Cleveland, Columbus, Beavercreek, and Canfield.
Contact Amourgis & Associates today for a free consultation and take the first step toward a life free from the burden of overwhelming debt.
