Calculate your current income
Take your income for the last six months and divide that amount by six.
Compare your income to the median in your state.
Your current income is compared to the median income for a similarly-sized family in your state. The median family income may be found here: http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm If your income is less than the median income then you are not considered ineligible to file a Chapter 7 bankruptcy - no more steps. You're done with the Means Test.
If your income is over the median you must subtract your allowed expenses
You might be thinking "That's no problem. I can show plenty of expenses." But for certain expenses (such as housing and transportation) you aren't allowed to deduct your actual expenses. For these expenses you are only allowed to deduct the allowed expenses. These are the government thinks you should have rather than the expenses you actually have. Check this out to see how much you are allowed to deduct for housing, transportation, etc. http://www.usdoj.gov/ust/eo/bapcpa/20080317/meanstesting.htm