Bankruptcy Questions Answered: How Much Debt Do I Have to Have to File Bankruptcy in Ohio? [2025 Update]

This is one of many common bankruptcy questions we hear from clients who are curious about the laws at play when filing for bankruptcy in Ohio. The simplest answer to this question is that there is no minimum debt required for bankruptcy in Ohio. Instead, whether or not you qualify for bankruptcy will depend on your individual situation. In addition to your debt load, there are other important factors to consider. 

Am I Eligible For Bankruptcy In Ohio?

Eligibility to file for bankruptcy in Ohio is based on several aspects of your financial circumstances, including your ability to repay debts and your ratio of debt to income. A range of factors will be used to determine whether you will be eligible to file for chapter 7 or chapter 13 bankruptcy. 

Working with an experienced Ohio bankruptcy lawyer will ensure that your full financial situation is taken into account when determining if filing for bankruptcy in Ohio is the best course of action.

Factors to include when deciding on bankruptcy may be: 

• Types of debts
• Ability to pay your debts outside of bankruptcy
• Creditors’ willingness to reach a resolution with you outside of bankruptcy
• Ability to discharge, or wipe out, the types of debts you have in bankruptcy
• Other, unique circumstances

While there is not a minimum amount of debt required to file bankruptcy, there is a maximum debt limit. As of early 2025, if you plan to file for chapter 13 bankruptcy in Ohio, you can’t have more than $1,395,875 in secured debt (e.g. car, home) and $465,275 in unsecured debt (e.g. credit cards, medical bills, personal loans). If debts surpass these limits, then a debtor will need to file for chapter 7 bankruptcy instead. 

How Do The Types Of Debts I Have Affect Filing For Bankruptcy?

In order to know if bankruptcy will eliminate all your debts, you need an understanding of how, under law, different types of debts cannot be discharged by bankruptcy. Non-dischargeable debts include:

• Some tax debts
• Domestic support obligations (child support and alimony)
• Debts from fraudulent acts or criminal behavior (drunk driving)
• Student loan debt

If the above types of debts are predominantly what you currently owe, then it is not likely that bankruptcy will be a viable option for you. There are some special circumstances in which some typically non-dischargeable debts can be forgiven, but this is rare and generally requires an extreme situation in which repayment causes undue hardship. An Ohio bankruptcy lawyer can assess your case and let you know how best to proceed.

Am I Able To Repay My Debts Outside Of Bankruptcy?

Prior to filing for bankruptcy, consider the amount of income you have and if it is sufficient to pay your debts. If it is high enough, you may not be eligible for chapter 7 bankruptcy, or you may have to repay a considerable portion of your unsecured debts in a chapter 13 bankruptcy.

On the other hand, if your debt is relatively low and you have enough income to pay it, it will likely be in your best interest to put off filing for bankruptcy until you truly need it. This is due to the limits on how often you can receive bankruptcy relief. If you file with a small amount of debt you can repay, you may not be able to receive another discharge in bankruptcy for many years. The pre-bankruptcy credit counseling course, mandated by both the state of Ohio and the federal government, will help you to determine the best course of action given your unique financial situation.

How Do I Know Whether To File Chapter 7 Or Chapter 13 Bankruptcy?

Although bankruptcy can be a viable option regardless of how little debt you have, there are certain requirements you need to meet in order to be eligible. 

These include:

• Filing history requirements: If you filed and were discharged through bankruptcy in the past, you may not qualify for another discharge for several more years. The exact number of years will depend on the type of bankruptcy and your specific circumstances.
• Income requirements: To be eligible for chapter 7 bankruptcy, you will have to pass the chapter 7 “means test”, in which your income is compared to the incomes of other Ohio families of your size. This helps the court decide whether you have the ability to pay off your debts.
• Other acceptable debt requirements: Only certain types of debts can be discharged, and these can be different depending on whether you qualify for chapter 7 or chapter 13 bankruptcy.

An even better bankruptcy question is should you file for bankruptcy in the first place? While there isn’t a set debt limit that triggers the need for a chapter 7 or chapter 13 bankruptcy case, take a good look at how debt is affecting your current and future life. 

If you are struggling to make even minimum payments, if creditors won’t leave you alone, if you’re facing legal action or wage garnishments, then bankruptcy may be a solid decision to get back on track financially. If your debts are primarily unsecured and you aren’t able to easily or quickly pay them down, then the negative credit impact may be cause for filing for bankruptcy. And if you are facing difficult and unpredictable life circumstances, like job loss or ongoing medical issues, bankruptcy may also be the best option to regain financial control. 

An experienced Ohio bankruptcy lawyer will be able to help determine whether bankruptcy is in fact a good solution for you and guide you through the process. Credit counseling and credit repair courses paired with bankruptcy can help you to recover financial health so that you can get out from under current debt without jeopardizing your access to future, necessary loans or credit. 

Hausen Law–Trusted Ohio Bankruptcy Lawyers

As you consider filing for bankruptcy in Ohio, know that Hausen Law is here to help. Bankruptcy is stressful enough – work with a trusted expert to simplify the experience and gain the best possible outcome.

For help with all things bankruptcy in Ohio, contact our Northeast Ohio Bankruptcy Attorneys–we’re here for you. Hausen Law is happy to serve all of Northeast Ohio, including the Akron, Canton, Cleveland, Columbus, Dayton, Cincinnati and Youngstown communities. Contact us today to set up a free consultation or to inquire about our credit counseling and credit repair programs. We can help you to successfully navigate through bankruptcy and beyond.