Wyoming bankruptcy law follows the federal Bankruptcy Code but layers on a set of state-only exemptions, the most notable being a $100,000 homestead exemption that is more generous than many neighboring states. Residents can file Chapter 7, Chapter 13, or, if they farm or ranch, Chapter 12, and every case runs through the U.S. Bankruptcy Court for the District of Wyoming. What follows is what actually matters when you file here: which chapter fits, what property you keep, who qualifies, which debts survive, and how the process moves.
Which Chapter Fits Your Situation
Chapter 7 is liquidation. A trustee reviews what you own, sells anything not protected by an exemption, and pays creditors from the proceeds. Most unsecured debts, including credit cards and medical bills, are then wiped out.1United States Courts. Chapter 7 – Bankruptcy Basics In practice, most consumer Chapter 7 cases in Wyoming are “no-asset” cases because everything the debtor owns falls within an exemption.
Chapter 13 is a repayment plan. You keep your property and make monthly payments to a trustee for three to five years, who distributes the money to creditors.2United States Courts. Chapter 13 – Bankruptcy Basics You need regular income to qualify, and your debts cannot exceed $1,580,125 secured or $526,700 unsecured. This is the chapter people typically use to catch up on a mortgage or car loan without losing the property.
The choice usually turns on income, assets, and goals. If your income is low enough to pass the means test and you don’t have significant non-exempt property, Chapter 7 ends your case fastest. If you earn too much for Chapter 7 or you’re trying to stop a foreclosure, Chapter 13 gives you a structured path.
Chapter 12 for Farmers and Ranchers
Wyoming’s agricultural base makes Chapter 12 unusually relevant. It was designed for family farmers and fishermen who need to reorganize debt while keeping an operation running. Like Chapter 13, it uses a three-to-five-year court-approved plan, but the eligibility rules and debt limits are tailored to farming.3United States Courts. Chapter 12 – Bankruptcy Basics
To qualify as a family farmer, total debts cannot exceed $12,562,250, at least 50% of those debts (excluding your home mortgage, unless it’s tied to the farming operation) must come from the operation, and more than 50% of your gross income for the prior tax year must come from farming.3United States Courts. Chapter 12 – Bankruptcy Basics The debt ceilings are far higher than Chapter 13’s, and plans can be built around the seasonal income patterns typical in ranching, which Chapter 13’s monthly payment structure doesn’t accommodate.
What Property You Keep: Wyoming Exemptions
Wyoming has opted out of the federal exemption system, so filers must use the state’s exemption list.4Wyoming Judicial Branch. Bankruptcy Basics The opt-out is codified in Wyoming Statutes § 1-20-109, and it means 11 U.S.C. § 522(d) is off the table for anyone domiciled in Wyoming for at least 180 days before filing.
Homestead
Wyoming protects up to $100,000 in equity in your primary residence.5Justia Law. Wyoming Statutes 1-20-101 – Homestead Exemption; Right The exemption covers houses, mobile homes, and other dwellings you occupy as your home. For most Wyoming homeowners with moderate equity, this means Chapter 7 doesn’t put the house at risk.
Personal Property
Wyoming Statutes § 1-20-106 sets specific dollar caps for what you can keep:6Justia Law. Wyoming Statutes 1-20-106 – Exemption of Other Personal Property; Personalty Used in Livelihood; Appraisement
- Household goods, furniture, bedding, and provisions up to $4,000 of the debtor’s choosing. When two or more people share a residence, each gets a separate $4,000 exemption.
- Up to $5,000 in equity in a single motor vehicle.
- Up to three firearms worth a combined $3,000, plus 1,000 rounds of ammunition per firearm.
- The family bible, pictures, and school books, with no value cap.
- Any cemetery or burial lot, fully exempt.
Wyoming does not have a general wildcard exemption. If you own something valuable that doesn’t fit a listed category, it could be at risk in a Chapter 7 liquidation.
Tools of the Trade and Retirement
Equipment, tools, and stock in trade used in your business or profession are exempt up to $4,000, and a professional’s library, instruments, and implements have their own $4,000 cap. For ranchers and tradespeople, this exemption can be the difference between restarting a livelihood and losing it.
Most tax-qualified retirement accounts, including 401(k) plans, are protected under federal law and stay outside the bankruptcy estate entirely. Traditional and Roth IRAs are exempt up to a federally adjusted cap that currently exceeds $1.5 million. These protections apply in every chapter.
Do You Qualify for Chapter 7? The Means Test
Chapter 7 isn’t open to everyone. If your household income exceeds Wyoming’s median for your family size, you have to pass the means test. The court averages your gross income over the six calendar months before filing and compares it to the state median.7U.S. Trustee Program. Means Testing
For cases filed on or after April 1, 2026, Wyoming’s medians are:8U.S. Trustee Program. Census Bureau Median Family Income By Family Size
- Single filer: $71,745
- Household of 2: $91,502
- Household of 3: $98,476
- Household of 4: $110,297
- Add $11,100 for each additional person
Income below the applicable threshold qualifies you for Chapter 7 without further analysis. Above it, you complete the full means test by subtracting IRS-approved living expenses from monthly income. If disposable income is high enough to fund a meaningful repayment plan, the court will steer you toward Chapter 13. These numbers are updated periodically, so check the current figures before filing.
Debts Bankruptcy Will Not Erase
Filing eliminates most unsecured debt, but a defined list survives both Chapter 7 and Chapter 13 under 11 U.S.C. § 523:9Office of the Law Revision Counsel. 11 U.S. Code 523 – Exceptions to Discharge
- Child support and alimony.
- Student loans, unless you file a separate lawsuit within your bankruptcy case and prove “undue hardship,” a notoriously difficult standard.
- Recent income taxes, unless the return was originally due at least three years before filing, the IRS assessed the debt at least 240 days before filing, and you actually filed the return at least two years before filing. Payroll taxes, fraud penalties, and property taxes are never dischargeable.
- Any debt incurred through fraud, false pretenses, or a materially false financial statement.
- Debts for death or personal injury caused by driving while intoxicated.
- Debts for intentional and malicious injury to another person or their property.
- Criminal fines, penalties, and restitution owed to government entities.
Last-minute borrowing is a trap. Luxury goods purchases over $500 within 90 days of filing are presumed non-dischargeable, as are cash advances over $750 within 70 days. Courts look for this.
How Filing Works in the District of Wyoming
Before you can file, you must complete a credit counseling briefing from a nonprofit agency approved by the U.S. Trustee’s office, within 180 days before your filing date.10Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor The session can be done by phone or online and usually costs around $20. Skip it and the court rejects your petition.
You’ll also need federal tax returns for the two most recent years, pay stubs covering the six months before filing, a full list of creditors with addresses and balances, recent statements from every bank and investment account, and documentation for significant assets like vehicles and real estate. The official schedules and Statement of Financial Affairs are signed under penalty of perjury, so numbers have to match your documents.
Petitions are filed with the U.S. Bankruptcy Court for the District of Wyoming, which has offices in Cheyenne and Casper.11United States Bankruptcy Court District of Wyoming. United States Bankruptcy Court District of Wyoming The filing fee is $338 for Chapter 7 or $313 for Chapter 13.12United States Bankruptcy Court District of Wyoming. Fee Schedule – Effective 12-1-2023 If you can’t pay upfront, you can request installments or, in Chapter 7, apply for a fee waiver.
The Automatic Stay
The moment the petition is filed, an automatic stay takes effect under 11 U.S.C. § 362. It immediately stops lawsuits, wage garnishments, foreclosures, repossessions, and other collection activity, and creditors who violate it can face sanctions.13Office of the Law Revision Counsel. 11 U.S. Code 362 – Automatic Stay The stay does not reach criminal proceedings, child support or alimony collection, or tax audits. Secured creditors can also ask the court to lift the stay, which happens most often when the debtor has no equity in the collateral and isn’t making payments.
The 341 Meeting and Discharge
After filing, a trustee is assigned and schedules a meeting of creditors, commonly called a 341 meeting.14Office of the Law Revision Counsel. 11 U.S. Code 341 – Meetings of Creditors and Equity Security Holders In Wyoming, these are currently held by Zoom for Chapter 7, 12, and 13 cases.15U.S. Trustee Program. Region 19 – Local Section 341 Meeting Information The trustee asks you questions under oath about your finances and paperwork. Creditors can attend, but in consumer cases they almost never do. A straightforward Chapter 7 meeting typically lasts about ten minutes.
Before the discharge is entered, you have to complete a second financial education course on budgeting and money management, separate from the pre-filing counseling. Skip it and the court can close the case without granting the discharge. A Chapter 7 discharge order typically arrives about four months after the original petition date.16United States Courts. Discharge in Bankruptcy – Bankruptcy Basics – Section: When Does the Discharge Occur?
Reaffirmation Agreements
If you’re filing Chapter 7 and want to keep a financed car or other secured property, the lender may ask you to sign a reaffirmation agreement, a new contract that keeps you personally liable for the debt in exchange for keeping the collateral.17Legal Information Institute. Reaffirmation Think carefully before signing. If you reaffirm a car loan and later can’t pay, the lender can repossess and pursue you for any deficiency, with no bankruptcy protection left. If you don’t have an attorney, the court must independently find that the agreement is not an undue hardship and is in your best interest before approving it.
After Discharge: Credit Reporting and Refiling
A Chapter 7 bankruptcy stays on your credit report for ten years from the filing date.18Office of the Law Revision Counsel. 15 U.S. Code 1681c – Requirements Relating to Information Contained in Consumer Reports Chapter 13 cases are typically removed after seven years by the major credit bureaus, though the federal statute technically permits reporting for up to ten. The practical hit to your score fades well before the record drops off, especially if you rebuild responsibly.
Timing matters if you ever need to file again. You cannot receive a new Chapter 7 discharge if your previous Chapter 7 was filed within the last eight years.19Office of the Law Revision Counsel. 11 U.S. Code 727 – Discharge If your earlier case was a Chapter 13 with a completed plan, the wait for a new Chapter 7 drops to six years, and the bar may not apply at all if you paid at least 70% of unsecured claims in good faith.