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Collect your income information for the preceding six months to determine your income qualifications to file a Chapter 7 Bankruptcy. The average, monthly gross income must be calculated based upon the previous six months. If your income exceeds the median income, you may not qualify for a Chapter 7. The median income for the State of Ohio changes periodically. Additionally, the number of persons in the household will determine the maximum allowed amount of gross household income.
Effective April 1, 2017 the median income for one person is $46,242, for two persons it is $57,938, for three it is $68,361 and for four it is $83,040.
Calculate your household budget. How much income does your family require to maintain the household each month for things like food, clothing, shelter, medicine, transportation and insurance? Subtract that amount from the monthly “take home” pay and see if there is any disposable monthly income.
Verify your debt. Obtain a credit report from AnnualCreditReport.com. This allows you to find any collection actions and obtain account numbers. All residents of Ohio are entitled to receive a copy of their own credit report each year from Equifax (my favorite), Experian, and TransUnion.
Obtain a certificate of credit counseling.
If you do not qualify for a payment plan, obtain from them a certificate which verifies that you have gone through credit counseling. Credit counseling is a requirement in Bankruptcy. There is a fee for obtaining this certificate.
Contact me for a free, extensive, and confidential consultation to review your individual situation and examine your legal options.
Deborah Spychalski Law
500 Madison Avenue
Toledo, OH 43604