Median Family Income in Ohio as of May 15, 2015
A term you might often hear when discussing or researching information about bankruptcy is “median family income.” If you do not know what this means you are not alone. However, the Median Family Income in Ohio amount is very important when trying to figure out how you can file for bankruptcy protection.
A calculation that is performed when deciding if Chapter 7 or Chapter 13 is right for your case is the current monthly income test. This test looks at the average gross family income for the six months prior to when your case will be filed. The average income is then multiplied by 12 to get an annual figure, and this amount is compared to the Median Family Income in Ohio for a similar household size.
This Will Change
The median income figures change about two or three times each year, once or twice in the spring and once in the late fall. In some cases it is beneficial to wait a month or two to file your case in order to make sure the numbers work. The most recent changes to the Median Family Income in Ohio levels come into effect Friday, May 15, 2015. Below are the income levels depending on your household size:
- 1 person household: $43,978.00
- 2 person household: $54,420.00
- 3 person household: $63,142.00
- 4 person household: $78,622.00
- Add $8,100.00 for each individual in excess of 4
What these numbers mean in practice. If you are living by yourself and make $43,978 or less a Chapter 7 bankruptcy should work. The Bankruptcy Court will also look at your monthly budget to see what income, if any, is available at the end of the month to repay creditors.