Bankruptcy in Ohio (2026): Exemptions & Means Test

Bankruptcy is a federal legal process, but what you can keep when you file depends heavily on Ohio law. Ohio has opted out of the federal bankruptcy exemptions, so filers whose exemptions are governed by state law must use the Ohio exemption system rather than the federal list. Ohio is notable because it adjusts its exemption dollar amounts for inflation every three years. This page explains Ohio's opt-out status, its homestead and other property exemptions, the Chapter 7 means test using current state income figures, and where Ohio residents file. It is general legal information, not legal advice.

Information last verified on September 6, 2026. Exemption amounts and means-test income figures change periodically; confirm current amounts before relying on them.

Scope: This article explains how Ohio exemptions and the federal means test apply to consumer bankruptcy. It is general legal information, not legal advice, and not a substitute for consulting an Ohio bankruptcy attorney about your situation.

Does Ohio Use State or Federal Bankruptcy Exemptions?

Ohio has opted out of the federal bankruptcy exemptions. Under 11 U.S.C. 522(b)(2) and O.R.C. 2329.662, a debtor domiciled in Ohio is not authorized to use the federal exemptions in 11 U.S.C. 522(d) and must claim the Ohio exemptions instead.

The federal Bankruptcy Code lets each state decide whether its residents may choose the federal exemption list. Ohio is one of roughly 35 states that opted out. Section 2329.662 of the Ohio Revised Code expressly provides that Ohio does not authorize debtors domiciled in the state to use the federal exemptions specified in the Bankruptcy Reform Act of 1978. Ohio filers instead use the exemptions in O.R.C. 2329.66, plus certain federal nonbankruptcy exemptions such as Social Security.

Which state's exemptions apply also depends on a residency rule. The Bankruptcy Code generally requires that you have been domiciled in a state for the 730 days (two years) before filing for that state's exemptions to apply. People who moved recently may have to use the exemptions of a prior state. Confirm your residency history with an attorney before assuming Ohio rules apply.

The Ohio Homestead Exemption

Ohio protects up to $182,625 of equity in a home for the cycle running April 1, 2025 through March 31, 2028. The Ohio Revised Code prints a base figure of $125,000, but O.R.C. 2329.66(B) directs the Ohio Judicial Conference to adjust every dollar amount in the section for inflation every third April, and the adjusted amount is the one that governs (O.R.C. 2329.66(A)(1) and (B)).

The homestead exemption is set in O.R.C. 2329.66(A)(1) and protects a debtor's interest in one parcel of real or personal property used as a residence. Unlike states with a flat statutory figure, Ohio adjusts its exemption dollar amounts for inflation every three years under O.R.C. 2329.66(B), which directs the Ohio Judicial Conference to raise each amount in the section to track the consumer price index and to publish the adjusted figures in the Register of Ohio. That is why the printed code text and the operative amount differ: the code still reads $125,000, while the adjusted homestead exemption for the cycle running April 1, 2025 through March 31, 2028 is $182,625, the figure the federal bankruptcy courts in Ohio publish for filers. Read the statute together with the current Judicial Conference adjustment rather than relying on the printed dollar figure alone.

There are limits. The homestead does not stop a forced sale for purchase-money debt on the home, for property taxes, or for a valid mortgage or mechanic's lien. Spouses filing jointly can each claim the homestead exemption on a co-owned residence, which can effectively double the protected equity.

A separate federal rule can override the state amount for recently acquired homes. Under 11 U.S.C. 522(p), a debtor cannot exempt more than $214,000 in homestead value acquired during the 1,215 days (about 40 months) before filing, for cases filed between April 1, 2025 and March 31, 2028. Because Ohio's homestead cap is below that federal ceiling for an individual, the 522(p) limit rarely binds a single Ohio filer, but the date you acquired your equity can still matter.

Vehicle, Personal Property, Wages, and Other Exemptions

For the cycle running April 1, 2025 through March 31, 2028, Ohio exempts $5,025 in one motor vehicle, household goods up to $16,850 in aggregate ($800 per item), tools of the trade up to $3,200, jewelry up to $2,125, $625 in cash and deposits, and a $1,675 wildcard in a bankruptcy case (O.R.C. 2329.66, as adjusted under division (B)).

The Ohio motor-vehicle exemption under O.R.C. 2329.66(A)(2) protects your interest in one vehicle up to $5,025 for the current cycle. Household furnishings, goods, appliances, books, animals, crops, and clothing are exempt up to $16,850 in aggregate, with no single item exceeding $800 (O.R.C. 2329.66(A)(4)(a)). Cash on hand, bank deposits, and tax refunds are exempt up to $625 (O.R.C. 2329.66(A)(3)).

Tools, books, and equipment used in your trade or profession are exempt up to $3,200 (O.R.C. 2329.66(A)(5)), and jewelry up to $2,125 (O.R.C. 2329.66(A)(4)(b)). Ohio also provides a wildcard exemption of $1,675 that a debtor may apply to an aggregate interest in any property under O.R.C. 2329.66(A)(18), which by its terms applies only in bankruptcy proceedings. Every one of these figures moves on the same triennial inflation adjustment as the homestead, so the next change is due April 1, 2028 and you should confirm the current adjustment before relying on any amount.

Wages are protected through Ohio's garnishment limits in O.R.C. 2329.66(A)(13), which exempt the greater of 75% of disposable earnings or a multiple of the federal minimum hourly wage that scales with how often you are paid: 30 times if you are paid weekly, 60 times if biweekly, 65 times if semimonthly, and 130 times if monthly. A debtor paid every two weeks is therefore protected up to 60 times the federal minimum wage, not 30. Retirement funds in qualified plans, public pensions, and most insurance benefits are also exempt under O.R.C. 2329.66.

The Chapter 7 Means Test in Ohio

For cases filed on or after July 15, 2026, the Ohio median family income is $66,239 for 1 earner, $83,725 for 2, $102,504 for 3, and $123,702 for a family of 4. The U.S. Trustee Program updates these figures about twice a year (justice.gov/ust).

The means test decides whether you can file Chapter 7. It starts by comparing your household's current monthly income, annualized, to the median family income for an Ohio household of your size. If your income is at or below the Ohio median, you generally pass and can proceed under Chapter 7. If it is above the median, you complete a second part of the test that subtracts allowed expenses to see whether you have meaningful disposable income; if you do, Chapter 7 may be presumed abusive and Chapter 13 may be the path instead.

The current Ohio median family income figures published by the U.S. Trustee Program, for cases filed on or after July 15, 2026, are:

For households larger than four, the U.S. Trustee Program adds $11,100 per additional person. These figures are derived from Census Bureau data and are revised roughly twice a year, typically in spring and fall, so always confirm the current numbers for your filing date.

Chapter 7 vs. Chapter 13 and the Automatic Stay

Chapter 7 discharges most unsecured debts after a trustee liquidates any nonexempt property; Chapter 13 keeps your property in exchange for a three-to-five-year repayment plan. Both trigger the automatic stay, which immediately halts most collection, foreclosure, and garnishment.

Chapter 7 is a liquidation. A trustee can sell property that is not protected by an exemption and distribute the proceeds to creditors, then most remaining unsecured debts are discharged, usually within a few months. Because Ohio's homestead and household-goods exemptions are sizable, many Ohio filers keep all or nearly all of their property in Chapter 7.

Chapter 13 is a reorganization for people with regular income who want to catch up on a mortgage or car loan, who have nonexempt assets they want to keep, or who do not qualify for Chapter 7. You repay some or all of your debts through a court-approved plan lasting three to five years, and you receive a discharge when you complete it.

The moment you file either chapter, the automatic stay under 11 U.S.C. 362 takes effect. It stops most collection calls, lawsuits, wage garnishment, and foreclosure or repossession activity while your case proceeds. The stay is one of the most powerful immediate effects of filing, though some obligations, such as certain domestic-support actions, are not stayed.

Where Ohio Residents File

Ohio is split into two federal bankruptcy districts: the U.S. Bankruptcy Court for the Northern District of Ohio and the Southern District of Ohio. You file in the district that covers your county.

Ohio has two bankruptcy courts. The Northern District of Ohio serves the northern counties, with court offices including Cleveland, Akron, Canton, Toledo, and Youngstown. The Southern District of Ohio serves the southern counties, with offices including Columbus, Cincinnati, and Dayton. You generally file in the division that serves the county where you have lived for most of the 180 days before filing. Before filing, you must complete a credit-counseling course from an approved provider, and before discharge, a debtor-education course.

What Bankruptcy Can and Cannot Do

Bankruptcy discharges most unsecured debts such as credit cards and medical bills, but it generally does not erase most student loans, recent income taxes, child support, or alimony.

A discharge wipes out personal liability for most general unsecured debts, including credit cards, medical bills, and many personal loans. It does not eliminate most student loans (absent a separate showing of undue hardship), recent income tax debts, domestic-support obligations like child support and alimony, most government fines, or debts from fraud. Secured debts like a mortgage or car loan can be discharged as a personal obligation, but the lender keeps its lien, so you must keep paying if you want to keep the collateral.

Because Ohio adjusts its exemption amounts every three years and the means test is technical, it is worth reviewing your situation with a licensed Ohio bankruptcy attorney before filing. The figures on this page were verified in September 2026 and should be confirmed against the current statutes and U.S. Trustee Program tables.

This is general legal information, not legal advice. Exemption statutes and means-test income figures change; the amounts here were verified in September 2026. Confirm current figures and how they apply to you with a licensed Ohio bankruptcy attorney.

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