When you are ready to declare bankruptcy in Wyoming, it is important that you understand the basics before doing so in order to get the best results. For example, before filing, you will have to go through six months of credit counseling in order to qualify. Also, if you plan on filing Chapter 7 bankruptcy then you will have to have an annual income that is less than the median annual income for the state of Wyoming. If you make more than the median, then you will have no choice but to declare Chapter 13.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is the preferred method because it will get rid of all of your old debts. There are a few debts that it will not get rid of however. Examples include: alimony, child support, back taxes, and most student loans. Chapter 7 is also known as liquidation bankruptcy because you are liquidating your possessions. The good news is that you will be able to hold onto most of your things due to the fact that you will be given numerous exemptions
Chapter 13 bankruptcy
When you file chapter 13 bankruptcy in Wyoming, it is important that you know that you will still be responsible for your debts. It will however, give you a chance to work with your creditors so that you will be able to develop a plan by which you can payoff your debt within three to five years. The main reason why someone would declare Chapter 13 is in order to save their home from foreclosure
How to file?
When you file for bankruptcy in Wyoming, you will first have to see a lawyer and gather up all the needed paperwork. The paperwork is needed to fill out your petition for bankruptcy and the schedules that go along with it. Paperwork includes: how much you make, a list of your possessions, and a list of your creditors and what you owe them. Your petition and schedules will then be filed with the Wyoming district bankruptcy court.
Exemptions in Wyoming
The most important thing to know when declaring Chapter 7 bankruptcy in Wyoming is that you will not have to give up all of your things. You will be able to declare the following income and property as exempt: real property that is occupied to $10,000, various insurance proceeds, liquor and malt beverage permits, various pensions, personal property, and wages up to 75 per cent.
