Bankruptcy in Wyoming
Feeling buried by debt with no clear way out? You’re not alone.
For many Wyoming residents, unpaid bills, collection calls, and rising financial pressure can feel relentless. But bankruptcy exists for a reason—it’s a legal process designed to help you take control when your finances spiral out of reach.
You don’t have to face this situation by yourself. A knowledgeable Wyoming bankruptcy attorney can help you understand your options and guide you through the steps with confidence. With the right support, financial relief is within reach.
Types of Bankruptcy in Wyoming
Bankruptcy gives individuals and businesses in Wyoming a legal pathway to reorganize or eliminate debts they can no longer manage. Depending on your financial situation, it could help you erase qualifying obligations or set up a court-supervised repayment plan that fits your budget.
Some debts—like child support, alimony, most student loans, and certain taxes—are generally not dischargeable. But for unsecured debts such as medical bills, payday loans, or credit card balances, bankruptcy can offer meaningful relief.
In Wyoming, most people file under Chapter 7, Chapter 11, or Chapter 13 of the U.S. Bankruptcy Code:
- Chapter 7 is best for those with limited income and few assets, offering fast relief by wiping out unsecured debt.
- Chapter 13 is ideal for individuals with regular income who want to catch up on missed payments without losing their home or vehicle.
- Chapter 11, while less common for individuals, is available to business owners and high-income earners who need to restructure more complex debt.
Bankruptcy cases in Wyoming are adjudicated by the United States Bankruptcy Court for the District of Wyoming. This federal court operates from two primary locations:
- Cheyenne Office: 2120 Capitol Avenue, 6th Floor, Cheyenne, WY 82001
- Casper Office: 111 South Wolcott Street, Casper, WY 82601
Chapter 7 Bankruptcy
For many Wyoming residents, Chapter 7 bankruptcy offers a chance to eliminate unsecured debts and make a clean break from financial stress. If you’re dealing with overwhelming credit card balances, medical bills, or personal loans, this form of bankruptcy can provide fast and effective relief. But it’s not for everyone, and understanding how you qualify is the first step.
To file under Chapter 7, you must pass a means test that compares your household income to the state median. If your income falls below that threshold, you’re generally eligible to move forward. If it’s higher, further analysis is required to determine whether you can still qualify based on allowable expenses. In 2025, the median income limits in Wyoming are:
- 1-person household: $63,413
- 2-person household: $82,927
- 3-person household: $94,681
- 4-person household: $110,604
Add-on amounts apply for larger households.
Once your case is filed, the court issues an automatic stay—a legal order that immediately stops most collection efforts. That means no more harassing phone calls, wage garnishments, or foreclosure activity while your case is pending. This breathing room gives you the chance to focus on resolving your financial situation without added pressure.
It’s important to know that not all debts are dischargeable. Chapter 7 won’t erase child support, alimony, recent tax debts, or any fines related to criminal or civil penalties. But for many, it can still be a powerful way to regain stability and stop the cycle of debt.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy gives Wyoming businesses—and in some cases, individuals with high debt loads—a way to reorganize their finances without shutting down operations or surrendering key assets. Unlike Chapter 7, which focuses on liquidation, Chapter 11 centers around creating a long-term repayment strategy while continuing to manage your day-to-day affairs.
This type of bankruptcy allows debtors to stay in control of their business or personal finances while working under court supervision. During the process, you’ll propose a reorganization plan that outlines how debts will be handled, usually over several years. Most plans are drafted within the first 6 to 12 months after filing, and they often involve renegotiating the terms of existing obligations to make repayment more manageable.
The benefit of Chapter 11 is flexibility. You can preserve your property, adjust repayment timelines, and restructure business operations as needed. However, this chapter is more complex than others, and it requires careful legal and financial planning. Working with an experienced Wyoming bankruptcy attorney is essential to ensure compliance with court rules and to build a plan that works for you and your creditors.
Starting a Chapter 11 case involves filing a detailed set of documents with the U.S. Bankruptcy Court. These include:
- Voluntary Petition (Form 201): Starts the case and provides key information about the filer.
- List of 20 Largest Unsecured Creditors (Form 204): Identifies major debts and the people or entities to whom they’re owed.
- Schedules of Assets and Liabilities (Forms 206A/B–206H): Breaks down everything you own, everything you owe, and how it all fits together.
- Statement of Financial Affairs (Form 207): Gives the court an overview of your financial history, recent transactions, and business activity.
- Disclosure Statement and Plan of Reorganization: Details how you plan to repay debts and continue operations—this must be reviewed and approved by the court.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy offers Wyoming residents with steady income a way to regain control without giving up their property. Known as a wage earner’s plan, this type of filing allows you to restructure your debts through a court-approved repayment schedule rather than liquidating your assets.
After filing, a trustee is assigned to your case to review your financial information—your income, expenses, debts, and assets—to determine if your plan is realistic and meets the legal criteria. The structure gives you a chance to catch up on secured debts like mortgages or car loans while maintaining possession of the items you need to move forward.
Repayment plans under Chapter 13 usually last three to five years, depending on how your income compares to the state median. If your income is below the threshold, you may be eligible for a three-year plan; if it’s above, expect to commit to five years.
During this period, you’ll make regular payments to the trustee, who then distributes the funds to your creditors according to the plan. While your case is active, you’re protected by an automatic stay that pauses most collection actions, including wage garnishments and foreclosure. For many, this chapter provides structure, predictability, and a path to long-term financial stability without starting from scratch.
The Bankruptcy Process in Wyoming
Filing for bankruptcy isn’t something most people take lightly, but if you’re facing debts you can’t repay in the next five years, it may be the right move. For many Wyoming residents, bankruptcy offers a structured path to stop the bleeding, pause collection efforts, and begin rebuilding with a plan.
To begin the process, you’ll need to prepare a full financial snapshot. This includes records of your income, living expenses, outstanding debts, and a list of all assets you own. Accuracy matters—a mistake or omission could delay your case or result in a denial. The court uses these documents to determine which chapter of bankruptcy you qualify for and which exemptions apply to your property.
In Wyoming, you’ll use state-specific exemptions to protect certain assets during your case. These rules determine what you can keep and what can be sold to repay creditors. Below is a breakdown of Wyoming’s current bankruptcy exemptions:
- Homestead Exemption: Protects up to $20,000 of equity in your primary residence. For married couples filing jointly, this doubles to $40,000.
- Motor Vehicle Exemption: Covers up to $5,000 in equity for one vehicle.
- Personal Property Exemptions
- Up to $4,000 in household items, including furniture, bedding, and food
- Up to $2,000 in clothing and wedding rings
- Up to $3,000 in firearms and up to 1,000 rounds of ammunition
- Exempts family Bibles, schoolbooks, photos, and burial plots
- Tools of the Trade: Allows up to $4,000 in tools, equipment, or supplies needed for your occupation.
- Wage Protection: Safeguards 75% of disposable weekly earnings or the equivalent of 30 times the federal minimum wage, whichever provides greater protection.
- Insurance and Benefits
- Retirement Accounts
- Public Benefits
Work With an Experienced Wyoming Lawyer
If you’re considering bankruptcy in Wyoming, it’s important to know that this process exists to help, not punish—people who are struggling financially. Whether you’re looking at Chapter 7 to discharge unsecured debts or Chapter 13 to reorganize what you owe, Wyoming’s exemption laws are there to protect the things you need most—like your home, vehicle, and retirement savings.
Submit a request online or call us today at (866) 345-6784 to speak with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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