If you’re thinking about filing bankruptcy in Wyoming, one of your first questions is likely:
“Will I lose my home, my car, or everything I own?”
The good news is that Wyoming law provides important protections for many essential assets. However, Wyoming requires you to use its state exemption system — and understanding how it works is critical before filing.
Here’s what you need to know.
Wyoming Requires Use of State Exemptions
If you have lived in Wyoming for at least 730 days (2 years) before filing bankruptcy, you must use Wyoming state exemptions. Wyoming does not allow most residents to choose the federal exemption system.
Because you cannot opt into federal exemptions, planning ahead is especially important.
Wyoming Homestead Exemption
Wyoming provides a homestead exemption that protects equity in your primary residence.
🏠 Homestead Protection
Wyoming protects up to $20,000 in home equity per owner.
If a married couple owns the home jointly, they may be able to protect up to $40,000 in equity.
Example:
- Home value: $300,000
- Mortgage balance: $265,000
- Equity: $35,000
If filing jointly, that $35,000 equity may be fully protected.
If filing alone, any equity above $20,000 may require additional planning.
Because Wyoming’s homestead exemption is relatively modest, homeowners with significant equity should evaluate their options carefully.
Wyoming Motor Vehicle Exemption
Wyoming protects:
- Up to $6,000 in vehicle equity per person
If married and both spouses own the vehicle, the exemption may be doubled.
Example:
- Car value: $18,000
- Loan balance: $12,500
- Equity: $5,500
The $5,500 equity would be protected under the vehicle exemption.
Wyoming Personal Property Exemptions
Wyoming law protects many everyday personal items, including:
- Household furnishings
- Clothing
- Appliances
- Food
- Burial plots
- Certain firearms (subject to limits)
- Wedding and engagement rings (within limits)
Wyoming also provides protection for:
- Tools of the trade (up to a specified amount)
- Certain livestock and agricultural property (important for rural residents)
Unlike some states, Wyoming does not provide a large general wildcard exemption, so asset-by-asset analysis is important.
Wages and Public Benefits
Wyoming protects:
- A portion of wages (consistent with federal garnishment limits)
- Social Security benefits
- Disability benefits
- Unemployment compensation
- Workers’ compensation
Public benefits are generally protected in bankruptcy.
Retirement Accounts
Most retirement accounts are protected under federal law, including:
- 401(k)s
- IRAs (subject to federal caps)
- Pensions
- Profit-sharing plans
Retirement savings are typically safe in bankruptcy.
How Exemptions Work in Chapter 7
In Chapter 7:
- A trustee may sell non-exempt property.
- Exempt property is protected.
- Many cases are “no-asset” cases where nothing is taken.
However, because Wyoming’s homestead exemption is lower than in many states, homeowners with significant equity must carefully evaluate Chapter 7 versus Chapter 13.
How Exemptions Work in Chapter 13
In Chapter 13:
- You keep your property.
- You enter a 3–5 year repayment plan.
- The value of non-exempt property affects how much you must repay unsecured creditors.
Chapter 13 is often used when home equity exceeds exemption limits.
Important Rules to Know
1. Residency Requirement
You must have lived in Wyoming for at least 730 days before filing to use Wyoming exemptions. If you recently moved, federal look-back rules may apply.
2. Exemptions Protect Equity — Not Total Value
Exemptions protect your equity in property.
Example:
- ATV value: $10,000
- Loan balance: $7,000
- Equity: $3,000
Only the $3,000 equity must fit within your exemption limits.
3. Do Not Transfer Property Before Filing
Transferring assets before bankruptcy can lead to serious consequences, including denial of discharge.
Is Bankruptcy Right for You?
Bankruptcy can:
- Stop foreclosure
- Stop wage garnishment
- Stop repossession
- Eliminate credit card debt
- Eliminate medical debt
- Provide a financial reset
But exemption planning must be done carefully to protect what matters most.
Speak With an Experienced Bankruptcy Attorney
The right bankruptcy strategy depends on:
- Your home equity
- Your vehicle equity
- Your personal property
- Your income
- Your long-term financial goals
Before filing bankruptcy in Wyoming, make sure you understand exactly what property is protected.
If you are overwhelmed by debt, schedule a consultation to review your options and protect what matters most.
