Is credit card debt erased by filing bankruptcy in Ohio?

Filing for bankruptcy in Ohio can erase credit card debt, depending on the bankruptcy chapter you’re eligible for. In Ohio, filing chapter 7 is the legal process which eliminates many of your unsecured debts such as credit card debt. Typically, in four to six months from the day you file, debts are wiped out. This means you aren’t required to pay creditors any money you owe.

However, there are eligibility requirements before filing bankruptcy in Ohio. For instance, chapter 7 is for individuals with unstable income. Thus, if you lose your job or make very little money, you may be eligible. Completing a means test in Ohio is the only way to know for sure that you can file chapter 7.

You must deduct your debts such as rent, utilities and credit card payments from your monthly income. Then, you have to subtract that amount from Ohio’s median income from your household size. The total left over is called disposable income. If there’s disposable income, or money left over, then you fail the means test. This means that you aren’t eligible to file chapter 7, but chapter 13. Passing the means test indicates that there is no disposable income and no way to pay your credit card debts.

Before filing bankruptcy in Ohio, speak with a lawyer who specializes in bankruptcy. The lawyer will make sure you’re eligible to file chapter 7. In addition, the lawyer will file your bankruptcy petition and list all your credit card debts.