State median income by family

[r2106]

We have 5 people in our family: 2 parents and 3 children. The state (Ohio) median income for 5 person family is $59,664. Is that what we need to be under to be eligible for Chap. 7? What about Chap. 13? Also, does not make sense to me how the median income goes up with the size of the family, even though there are likely only two income earners maximum per family. Not to mention the expenses are more, the larger the family is.

[mountanddo]

There are many factors that determine whether you are eligible for a chapter 7 not just the median income but that is one of them.

Regarding the median. That's a good observation and in theory it doesn't make sense but I would assume the reason is that it takes less money to support a two person household than a five person household. It would not make sense to make the two person household hold to the same income level but not have the same expenses. I would guess there is some formula they have where it takes so much for a two person household to maintain an acceptable level for living and then add on additional people.

I'm sure there is a better explanation but that's my quick version.

[ValleYum]

Are you looking here: http://www.justice.gov/ust/eo/bapcpa...come_table.htm ??

Effective 11/01/2011, I compute the median income for an Ohio family of 5 as $78,099.

You need to be under this dollar amount to not have to complete the Chapter 7 Means Test - Form B22A.

You still have to show that you do not have sufficient income for a Chapter 13 bankruptcy by virtue of Schedules I & J.

Hope this helps a little bit.

[r2106]

Thank you "opinionated woman"! I think I was on an Ohio government website, but it could have been outdated. I was under the assumption that "median" income was based on the actual incomes of people in the state. Anyway, looks like we are way under the median of $78,099. I think I am experiencing cold feet. I do not want to lose our house or cars. I have had people tell me that I could filing a Ch. 7. One guy told me they took his car worth less than $900, but I do not think it was his only car. The attorney I spoke with said he did not think we would. Our cars are each valued at under $3000.00. Our home is only worth about $160,000 on the market and that is what we owe. I do not know why the bank would want it because they will not be able to sell it either, I am sure. Unless they want to sell it at a loss.

[ValleYum]

Anyway, looks like we are way under the median of $78,099. I think I am experiencing cold feet.

I think almost everyone on here can relate to the 'cold feet' and the worries that you will lose your house and your cars or you will starve and everyone will know and OMG!! I remember well how you are feeling right now.

The paperwork packet our attorney sent us was so detailed and asked for so much information but once I completed it the attorney's office took over from there with only a few phone calls or emails for additional info or to clarify something with us before we went in to their office to review and sign our petition.

The thought of bankruptcy is so damn scary BUT if you are experiencing a financial crisis like we were, I can not tell you the amount of relief filing BK will give you.

I do not want to lose our house or cars. I have had people tell me that I could filing a Ch. 7. One guy told me they took his car worth less than $900, but I do not think it was his only car. The attorney I spoke with said he did not think we would. Our cars are each valued at under $3000.00. Our home is only worth about $160,000 on the market and that is what we owe. I do not know why the bank would want it because they will not be able to sell it either, I am sure. Unless they want to sell it at a loss.

In bankruptcy you can keep certain assets. These are called exempt assets. Assets that you can not exempt are called non-exempt assets and can be taken over by the bankruptcy trustee. Exemptions are written in to your state's laws and are what you use to exempt your assets with.

NOTE: On exemptions, most states allow a married couple to double the amount of many exemptions. Make sure to check with your attorney about this!

The info below is presuming you are filing Chapter 7:

Based on the info you gave above, if you are current with your mortgage payments you should be able to keep your home since Ohio bankruptcy exemptions allow for you to exclude $21,625* worth of equity in your home. Check about being able to double this exemption amount and even if you don't think you have any home equity, perhaps you should exclude it anyway!! Your attorney will know best.

Ohio bankruptcy exemptions allow for you to exclude $3,450* worth of equity in your vehicle. Since you have 2 vehicles and are filing jointly, you may be allowed to each use a $3,450* exemption - your attorney will know for sure.

Make sure to be careful of the amount of cash you have in the bank on filing day and only have the amount you can exempt and make sure all your checks/payments have cleared. It looks like you can have $800* cash in the bank ($400* each for you and for hubby). Ohio has a wildcard of $1,150* (which you may can double - remember to ask) that you could use to exclude savings account monies, an anticipated income tax refund if you guys are getting one for this year or you can use it to cover any other assets you want to keep.

*Check with your attorney to make sure the dollar amounts for exemptions have not been updated by your state as sometimes they change.

You can see the rest of the exemptions for Ohio here: http://www.legalconsumer.com/bankrup...-law.php?ST=OH

When you get to the point of filling out your income and expenses sheet for your attorney (which he will put on Schedules I & J of your BK petition) just yell out if you need assistance. You can post a thread asking for opinions on your expenses - sometimes the folks here can provide some good input or help you remember an expense you may not have listed.

Please, keep reaching out for help both here and to your attorney's office. Your local attorney knows what flies in your area and your fellow forum members all are here because we have walked a mile (or twenty) in your shoes. Hang in there, relief is on the way - just keep working on that packet of info so your attorney can get you guys filed!!!

[r2106]

Thank you!

I cannot thank you enough for your advice, wisdom, and encouragement!
I am going to do it!!!

[oregonpilot]

I cannot thank you enough for your advice, wisdom, and encouragement!
I am going to do it!!!

good for you r2.....it is scareeEEEeeee. _/-\_/-\_ (that's the rollercoaster)
I spent months going from yes i have to file---nope, not gonna do it...yup, nope. LOL
it's going to be OK.
VY has given you alot of great info....awesome VY....we are all here for you r2.