Filing for bankruptcy is not a daily issue, hence people tend to confuse themselves with questions like are they eligible, and if they are what to do next that suits their condition. Usually, there are two types of bankruptcies that a customer can file Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 Bankruptcy If you want to eliminate most of your debts but not all then Chapter 7 or straight bankruptcy will help you deal with it. Chapter 7 Bankruptcy does not allow you to discard fines like parking tickets, taxes, car loans, etc. As revealed by Eric Ollason Attorney at Law for an individual or an organization to qualify for chapter 7 bankruptcy, it needs to pass a test known as "Means Test". The means test is only applicable for individuals who intend to discharge their primary consumer debts. First, you need to calculate your yearly income. You can also follow the below steps: Add your last six months income, Add up all the sources of income that is incoming to your household, be sure to include yours and the income of others household members for the past six months. While undergoing the calculations for your family, do not include incomes like social security, or unemployment compensation, Once you have the total income incurred from the above two steps, divide it by 6, and Now multiply the resulting amount by 12 so as to obtain your annual/yearly income. Once you have your yearly income, compare it with that of median incomes of your state. The median incomes are available for each and every state. You can take this example whereby in the year 2009, Benson had a median income of $46,523 for a family of member 1; $57,006 for a family of members 2; $67,991 for a family of members 3; and for a family of members 4 it was $83,036. If the members of a family more than four, then an additional amount of $6,900 was to be added for each family member. After all your calculations, if you still find yourselves low on income i.e. your annual income is less than the median income available in your state, you may proceed with the Chapter 7 Bankruptcy. If an individual has a disposable income which exceeds $6,575 over a 5-year period, then Chapter 7 filing is presumed to be rude. A highly qualified bankruptcy lawyer from Eric Ollason Attorney at Law in Benson may easily nearby the facts about the income and expenses in such a manner that it would persuade the requirements for Chapter 7 filing.