People searching for Ohio bankruptcy laws are usually surprised by the first thing they learn: there is no separate Ohio bankruptcy code. Bankruptcy is federal law, governed by the U.S. Bankruptcy Code and filed in federal court — but Ohio still shapes your case in crucial ways. Ohio decides which of your property is protected from creditors, Ohio’s federal courts hear your case, and Ohio income figures determine whether you qualify for the simpler chapter. This guide explains how bankruptcy actually works for Ohio residents: the two main chapters, the means test, Ohio’s exemption law, where cases are filed, and what it costs.
Ohio Bankruptcy Laws at a Glance
- The law itself: federal — Title 11 of the U.S. Code. Cases are filed in U.S. Bankruptcy Court, never in Ohio state courts.
- Ohio’s two districts: the Northern District (courthouses in Cleveland, Akron, Canton, Toledo, and Youngstown) and the Southern District (Columbus, Cincinnati, and Dayton).
- The main chapters for individuals: Chapter 7 (liquidation, most debts wiped out in a few months) and Chapter 13 (a 3-to-5-year repayment plan).
- Ohio’s big role: exemptions. Ohio has opted out of the federal exemption list, so what you keep is decided by Ohio Revised Code 2329.66.
- The headline exemption: up to $182,625 of equity in your home per person under the current adjustment (April 1, 2025 – March 31, 2028).
- Filing fees: $338 for Chapter 7 and $313 for Chapter 13, set nationally.
Chapter 7 vs. Chapter 13: The Two Paths
Chapter 7 — liquidation
Chapter 7 is what most people picture as “bankruptcy.” A court-appointed trustee reviews your property; anything not protected by an exemption can theoretically be sold to pay creditors, and in exchange most unsecured debts — credit cards, medical bills, personal loans, old utility balances — are discharged, meaning you’re no longer legally required to pay them. Most Ohio Chapter 7 cases are “no-asset” cases in which everything the filer owns is exempt, so nothing is actually sold. A typical case finishes in about three to six months. In return, you must pass the means test described below, and you generally can’t receive another Chapter 7 discharge for eight years.
Chapter 13 — repayment plan
Chapter 13 is a reorganization for people with regular income. Instead of liquidation, you propose a plan to pay some or all of your debts over three to five years, and you keep your property while you pay. Chapter 13 is the chapter that can stop a foreclosure and let you catch up on missed mortgage payments over time, cure car loans, and pay priority debts like recent taxes and child support arrears in full through the plan. When the plan ends, remaining qualifying unsecured debt is discharged. People choose Chapter 13 because their income is too high for Chapter 7, because they’re behind on a home or car they want to keep, or because they have non-exempt property they don’t want to risk.
Where Ohio Bankruptcy Cases Are Filed
You file in the federal district that covers the county where you live. The Northern District of Ohio serves the northern half of the state, with bankruptcy courthouses in Cleveland, Akron, Canton, Toledo, and Youngstown. The Southern District of Ohio serves the rest, with courthouses in Columbus, Cincinnati, and Dayton. The two districts have their own local rules, forms, trustees, and procedures, so filers and attorneys work from the website of their own district’s bankruptcy court. The U.S. Courts bankruptcy basics pages are the official starting point for forms, fees, and plain-language explanations of each chapter.
The Means Test: Who Qualifies for Chapter 7
Since 2005, Chapter 7 has been gated by the “means test,” designed to push people who can afford to repay something into Chapter 13. It works in two steps.
Step one: compare your income to Ohio’s median. The court looks at your average monthly income over the six months before filing and compares it to the median income for an Ohio household of your size, using figures published by the U.S. Trustee Program and updated periodically. If your income is at or below the Ohio median, you pass and can file Chapter 7.
Step two: the expense calculation. If you’re above the median, a longer calculation subtracts allowed expenses — IRS standard allowances for food, clothing, and housing, plus actual payments on secured debts, taxes, support obligations, and certain other costs. If what’s left shows you could pay a meaningful amount to unsecured creditors over five years, the law presumes Chapter 7 would be an “abuse,” and most people in that position file Chapter 13 instead. High-income filers do sometimes still qualify for Chapter 7 when their real expenses are high — the calculation is detailed and very fact-specific.
Ohio Exemptions: What You Get to Keep
Exemptions are the laws that decide what property creditors and the trustee cannot take. Federal law offers a federal exemption list, but it also lets states opt out — and Ohio has opted out under Revised Code 2329.662. If you’ve lived in Ohio long enough to use its exemptions, you must use the Ohio list in Revised Code 2329.66. Dollar amounts in that statute are adjusted for inflation every three years by the Ohio Judicial Conference; the current figures apply to cases filed from April 1, 2025 through March 31, 2028.
- Homestead: up to $182,625 of equity in a home you or a dependent live in. Because the exemption is per person, a married couple filing jointly who both own the home can protect up to $365,250 of equity. Remember that equity means value minus what you owe — a $300,000 home with a $220,000 mortgage has $80,000 of equity, comfortably inside the exemption.
- Motor vehicle: up to $5,025 of equity in one vehicle, under the current adjustment.
- Household goods and personal items: protected up to per-item and aggregate caps, along with separate protection for items like health aids and burial plots.
- Wages, retirement, and benefits: pensions, IRAs and similar retirement accounts, public benefits, and a large share of earned wages receive strong protection under Ohio and federal law.
- Wildcard: a modest additional amount you can apply to any property you choose — useful for covering a bank balance or a second item that doesn’t fit another category.
Exemptions are powerful but not unlimited. They do not stop a mortgage lender from foreclosing if you don’t pay the mortgage, and certain debts — most taxes, child support, and fraud-based claims — have special rules. Figuring out exactly which of your assets are fully covered is the single most important analysis in an Ohio bankruptcy case.
The Automatic Stay: Immediate Protection
The moment a case is filed, a federal injunction called the automatic stay stops most collection activity cold: lawsuits, garnishments, foreclosure sales, repossessions, collection calls, and most landlord actions must pause. For someone facing a sheriff’s sale or a wage garnishment, that immediate breathing room is often the reason to file when they do. The stay has limits — it doesn’t stop child support enforcement or most criminal matters, it can be lifted by the court, and repeat filings within a year shrink its protection. But as emergency relief, it is one of the strongest tools in consumer law. If housing is your emergency, it helps to also understand the state side of the process in our guide to Ohio eviction laws.
Debts Bankruptcy Usually Does Not Erase
Bankruptcy discharges many debts, but not all. Debts that typically survive include child support and spousal support, most student loans (absent a separate showing of undue hardship), recent income taxes and other priority tax debts, debts incurred by fraud, and fines and restitution owed to the government. Secured debts are a special case: the personal obligation can be discharged, but the lien usually survives, which is why keeping a house or car means keeping up the payments or curing arrears in Chapter 13.
How Filing Works, Step by Step
- Credit counseling: within 180 days before filing, complete a briefing from an approved nonprofit credit counseling agency. A second course, in debtor education, is required before discharge.
- File the petition: the petition, schedules listing your property, debts, income, and expenses, and the exemption claims on Schedule C open the case — and trigger the automatic stay.
- Pay the filing fee: $338 for Chapter 7 or $313 for Chapter 13. Chapter 7 filers with very low income can apply for a fee waiver, and fees can be paid in installments.
- Meeting of creditors: about a month after filing, you attend a short hearing (the “341 meeting”) where the trustee — and any creditors who appear — ask questions under oath.
- Discharge: in Chapter 7, the discharge order typically arrives a few months after filing; in Chapter 13, it comes after the plan is completed.
Attorney fees are separate from court fees and vary; in Chapter 13, much of the attorney’s fee is commonly paid through the plan itself. Filing without a lawyer is permitted, but exemption mistakes can cost people property, which is why most Ohio filers use counsel.
Other Chapters You May Hear About
Individuals occasionally encounter two other chapters. Chapter 12 is a specialized reorganization for family farmers and family fishermen, with higher debt limits designed for agricultural operations — relevant in Ohio’s farm counties but used by a small number of filers. Chapter 11 is primarily business reorganization, though its Subchapter V offers a streamlined path for small businesses and is sometimes used by individuals with business debts. Chapter 9 (municipalities) and Chapter 15 (cross-border cases) don’t apply to ordinary consumer filers. For the vast majority of Ohioans, the real choice is the one covered above: Chapter 7 or Chapter 13.
Credit Consequences and Repeat Filings
A bankruptcy filing appears on credit reports for up to ten years for Chapter 7 and seven years for Chapter 13, though its effect on a credit score fades with time and many filers begin rebuilding — secured cards, small installment loans paid on time — within a year or two of discharge. Timing rules also limit serial use: you generally cannot receive a Chapter 7 discharge if you received one in the previous eight years, and shorter waiting periods apply between Chapter 13 cases and when switching chapters. Filing a case mainly to trigger the automatic stay, over and over, draws court sanctions and reduced stay protection, so the stay should be treated as a bridge to a real resolution, not a stalling tactic.
Alternatives Worth Comparing
Bankruptcy is the strongest tool, not the only one. Depending on the situation, Ohioans sometimes resolve debts through direct negotiation or settlement with creditors, nonprofit credit-counseling debt management plans (which repay in full over time rather than discharging), consolidation loans, or — for specific debts like federal student loans or taxes — the hardship, discharge, and offer-in-compromise programs those creditors run. Each alternative lacks something bankruptcy provides: only bankruptcy forces all covered creditors to stop at once and accept a discharge. Comparing them honestly, ideally with figures on paper, is part of using Ohio bankruptcy laws wisely rather than reflexively.
The Bottom Line
Ohio bankruptcy laws are really a combination: federal bankruptcy law provides the machinery — the chapters, the discharge, the automatic stay — while Ohio law supplies the exemptions that determine what you keep, and Ohio income figures gate Chapter 7 through the means test. With a homestead exemption of $182,625 per person under the current adjustment, Ohio is comparatively protective of homeowners. If you’re considering filing, get your specific numbers reviewed before you act; small differences in equity or income can change which chapter is right.
This article is general information about bankruptcy law, not legal advice, and reading it does not create an attorney-client relationship. Bankruptcy is a major legal decision with long-term credit consequences — consult a licensed Ohio bankruptcy attorney about your own finances before filing.
