While bankruptcy rates increase throughout the country because of a suffering economy and continued credit purchasing by consumers, Wyoming sits at the bottom of the bankruptcy per capita list for the United States. Yet, though bankruptcy is infrequent, additions to the federal outlines for bankruptcy have been made. Bankruptcy is often assumed to be a last resort, but there are multiple methods for the process, and the process can be very complex.
Finding a Bankruptcy Attorney
To help with the intricacies of bankruptcy it is highly suggested that debtors consult a bankruptcy attorney, and utilize their expertise throughout the whole process. Though there are only three types of bankruptcy that constitute the vast majority of cases, Chapter 7, Chapter 11 and Chapter 13, these specialized attorneys are invaluable throughout because of their ability to assess and forecast financial situations within the framework of a bankruptcy. To find the best attorney, personal or business referrals are generally the best, but there are also many online services to aid the search.
Bankruptcy Options
Chapter 7 bankruptcy remains to be significantly more common than any other method, because of the immediate benefits. However, each of the following have their own advantages and disadvantages that are useful for varying circumstances:
Chapter 7 offers nearly complete debt elimination, at the price of some of one’s possessions, except the exempted property, which are liquidated for creditor repayment, giving this method the nickname “liquidation bankruptcy.”
Chapter 13 offers those with financial problems who maintain an income an opportunity to reorganize their debts and financial outlook, creating a three to five year repayment plan through the bankruptcy court along with their creditors, while keeping all of their property.
Chapter 11 offers a process very similar to Chapter 13, but altered to fit the needs of businesses, rather than individuals. With this method, businesses can continue operating and generating revenue with reorganized finances, while repaying their debts.
Wyoming Exemptions
Wyoming state law regulates the majority of exemptions for Chapter 7 bankruptcy. The federal exemption list may not be used, but the federal supplementary exemptions may be used in addition to the state guidelines, which are:
|
Homestead |
up to $10,000 on house or $6,000 on house trailer (joint owners may double) |
|
Wages |
up to 75% earned but unpaid, National Guard earnings |
|
Personal Property |
Household items to $2,000/person in the home, clothing and wedding rings to $1,000, pre-paid funeral contract, motor vehicle to $2,000 |
|
Pensions |
Public and municipal employees, private or public retirement funds or accounts |
|
Public Benefits |
Crime victims, worker’s, unemployment, veteran’s, general |
|
Tools of the Trade |
Implements of professionals to $2,000 or any other trade implements to $2,000 |
|
Insurance |
Annuity to $350/month, group life or disability proceeds |
|
Miscellaneous |
Burial provisions, health aids, child support and alimony, liquor licenses |
Filing the Petition
Not everyone is eligible for Chapter 7 bankruptcy, and before filing a petition to the bankruptcy court for it, a “means test” must be passed. Once passed an inventory of all possessions must be taken, and should be done so with caution, as to avoid possible bankruptcy fraud. Response to petitions is usually given 20 to 40 days after it is filed. After a successful petition all creditors are contacted, and the next step is a “341 meeting.” For those petitioning for Chapter 13, this is a vital step. The creditor repayment plan is negotiated at this meeting between the creditors and the debtor through a bankruptcy trustee.
