Traditionally, debtors could choose between two types of bankruptcy – Chapter 7 liquidation, and Chapter 13 reorganization. However, new federal laws set forth standards for Chapter 7 eligibility that may force some debtors with Chapter 13 bankruptcy as their own only option. More specifically, debtors who wish to file Chapter 7 bankruptcy must now meet a means test in terms of their income. Debtors whose income falls at or below the median income for a family of like size and location are generally eligible for Chapter 7 bankruptcy proceedings. If debtors have income in excess of the income set forth by this means test, or otherwise have resources with which to repay at least a portion of their debts, then they generally will not qualify for Chapter 7 bankruptcy relief.