Wyoming Bankruptcy Exemptions and Law

Wyoming state law provides the exemptions that residents must use during the bankruptcy process. Although the U.S. Bankruptcy Code contains a list of exemptions, they do not apply in Wyoming. Most other aspects of a Wyoming bankruptcy are governed by federal law.

To qualify for a Wyoming bankruptcy, you must have resided in Wyoming for 730 days (two years) prior to filing for bankruptcy. If you have not lived in Wyoming that long, you must use your previous state of residence or use the Federal exemptions.

To file bankruptcy, you must complete a credit counseling course within 180 days of filing for bankruptcy. You can find a list of approved credit counseling agencies at the federal Bankruptcy Trustee webpage. Classes can be taken online and take a few hours to complete. After bankruptcy discharge, you will also need to take a financial management class.

The filing fees are $338 for a Chapter 7 and $313 for a Chapter 13. You can request an installment payment plan or file a fee waiver if you cannot pay in full at the time of filing.

Types of Bankruptcy in Wyoming

Most people in Wyoming file one of two types of consumer bankruptcy: Chapter 7 or Chapter 13. Both types protect your home and property, but they differ in how your debt is discharged and how you pay your creditors.

Chapter 7 Bankruptcy

In a Chapter 7 or liquidation bankruptcy, a bankruptcy trustee sells your non-exempt property and pays off your unsecured creditors. Any remaining debt is discharged by the bankruptcy judge.

To qualify for a Chapter 7, you must pass a means test. If your annual income is less than the median annual income in Wyoming, you automatically qualify for a Chapter 7. If you make more, the court considers your monthly income and living expenses versus your total debt. If you have enough disposable income to make monthly payments to your creditors, you must file a Chapter 13 instead.

After a Chapter 7, you will still have your secured debts. A Chapter 7 only eliminates unsecured debt such as medical bills, credit card debt, and personal loans.

Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, also known as a “reorganization,” you and the trustee create a monthly repayment plan. The trustee will help consolidate your debt and use your monthly payments to pay off your creditors over a three- to five-year period. To qualify for a Chapter 13, you must have a steady income and enough disposable income to pay your living expenses and your monthly payments. If you stay current on your payments, the judge will usually discharge any remaining deficiencies at the end of the repayment period.

After a Chapter 13, you should not have any remaining debts. The purpose of the repayment plan is to pay off all secured creditors.

Automatic Stay

Both types of bankruptcy provide an automatic stay. This halts all legal action after you file your bankruptcy petition. The automatic stay prevents all collection actions, including:

• Foreclosure and evictions
• Wage garnishment
• Repossession
• Harassing phone calls, emails, and texts

It doesn’t stop certain payment responsibilities, such as child support or alimony.

The automatic stay lasts for the duration of the repayment period in a Chapter 13 bankruptcy. For Chapter 7 bankruptcy, it remains until the case is closed. The stay gives you time to review your financial situation and decide how to proceed with your bankruptcy case.

Wyoming Bankruptcy Exemptions

Bankruptcy exemptions let Chapter 7 filers protect their personal property and homestead equity during bankruptcy. Wyoming exemptions are primarily found in Wyoming state statutes, but some assets, such as pensions and retirement funds, are protected by federal law.

There are a number of exemptions Wyoming residents may qualify for. These include:

• Homestead Exemption: Wyoming’s homestead exemption protects up to $100,000 of home equity
• Motor Vehicle Exemption: Up to $5,000 of equity in a motor vehicle
• Personal Property: Up to the value of $4,000
• Clothing (including a wedding ring): Up to $2,000
• Firearms: Up to three with a value of $3,000, plus up to 1,000 rounds of ammunition
• Pension Plans, Life Insurance Policies, Social Security Benefits, Other Public Benefits: All are fully exempt

Spouses can double the exemption amounts if they file jointly. The Wyoming homestead exemption may protect your property if only one spouse files. Consider hiring a Wyoming bankruptcy attorney to ensure everything is filed correctly.

Exceptions to Wyoming Bankruptcy Exemptions

Bankruptcy exemptions do not cover all types of debts. Most Chapter 13 bankruptcies are intended to erase excess unsecured debt and allow homeowners to keep their homes by paying their mortgage during the payment period.

Bankruptcy cannot discharge:

• Student loans
• Tax liens
• Child support and alimony arrearages
• Secured loans like car loans

In most instances, Chapter 7 doesn’t discharge secured debts.

Get Legal Assistance for Your Bankruptcy Filing

You can file a pro se bankruptcy if you have few assets, uncomplicated debt, and a good knowledge of financial law. Otherwise, it’s a good idea to have an attorney help with your filing.

The exemption amounts have been the same for many years, but can change without notice.

If you need to appear in Wyoming’s bankruptcy court, it’s always best to have someone who knows the local rules. Each court has its own rules about how bankruptcy forms must be completed and submitted, and your attorney will know how to do this. An attorney can guide you through a Chapter 7 means test eligibility and offer legal advice when needed. When it’s time for the meeting of creditors and negotiating with the trustee, having an attorney means getting the best terms for your payment plan.

If you’re considering bankruptcy, your first step should be to consult a Wyoming bankruptcy attorney. While you can attempt to enter bankruptcy for just the cost of a filing fee, having a skilled attorney can ensure everything is done right the first time.