Effective April 1, 2022: Make More & Still File Chapter 7 Bankruptcy

On April 1, 2022, U.S. Bankruptcy courts released the new income limits to file chapter 7 bankruptcy. A single person in Ohio can now make as much as $54,877 and still file chapter 7 bankruptcy. Assuming a 40 hour work-week, that’s approximately $26.30/hr.

That means if you’re a single person with no dependents, and you make less than $26.30/hr, it’s possible* you could eliminate all your debts in a chapter 7 bankruptcy!

Below are the numbers effective April 1, 2022:

Household Size of 1: $54,877
Household Size of 2: $70,209
Household Size of 3: $82,734
Household Size of 4: $100,693
Household Size of 5: $110,593
Household Size of 6: $120,493

These numbers are important because they determine (via the “Means Test”) if you are eligible for the benefits of a chapter 7 bankruptcy.

In the bankruptcy “Means Test,” a person’s income is calculated by taking their prior 6 months of income and DOUBLING it, to get an annualized amount. The annualized amount is then compared to the numbers above to determine if the person “passes the Means Test.” The “Means Test” is the [in]famous test that determines someone’s eligibility for the benefits of chapter 7 bankruptcy.

For example: Let’s say you work at Honda in Marysville making $33.00/hr. You have 1 dependent (i.e. household size of 2). In the past 6 months you have earned $34,320 working 40-hour work weeks. You will pass the bankruptcy “Means Test” because $34,320 x 2 = $68,640 (annualized income), which is less than the $70,209 limit. This means you are eligible for the benefits of a chapter 7 bankruptcy!

Rest assured, even if you don’t qualify for chapter 7, you can still get the awesome benefits of a chapter 13 bankruptcy. Both chapter 7 and chapter 13 bankruptcy are sets of laws designed specifically to help consumers.

I bet if more Ohio consumers knew how easy it was to eliminate their debts (and not have to pay any of it back!), then many more of us would be filing bankruptcy, rather than struggling to pay our debts every month.

To find out how a bankruptcy can help your situation, call/text/email Attorney Lucas Ruffing for a FREE consultation.

Thanks for Reading and Stay Well,

Lucas Ruffing
Attorney
Call/text: 740-815-1114
Email: LucasRuffingLaw@gmail.com

 *As always, there are a number of factors that determine if you could/should file under chapter 7 or chapter 13. It’s best to consult with an attorney prior to filing.