Wyoming Bankruptcy Laws should be known by every resident of the state of Wyoming. Drowning in a sizable amount of debt is the last straw of every debtor. Although you may not mean it to turn out this way, there are circumstances beyond your control that can upset your budget. The only solution to your financial problems is debt relief in the form of bankruptcy protection.
Wyoming bankruptcy laws offer bankruptcy protection to every Wyoming citizen who wants to financially start anew. As much as the state wants to grant every debtor’s application for bankruptcy, the strict criteria for bankruptcy protection has been made stricter in 2005 with the passing of the Bankruptcy Abuse Prevention and Consumer Protection Act. This was done to ensure that no bankruptcy fraud cases occur.
State laws do not encourage bankruptcy declaration unless a debtor is placed under an impossible financial situation that is why the bankruptcy courts have ordered a mandatory credit counseling and education program. Its purpose is to teach debtors the value of handling their money and develop a budget. This knowledge will be useful for the debtor when he will start anew financially. The court stipulates that the agency should be recognized by the bankruptcy courts and the counseling should be taken 6 months within the filing of bankruptcy protection.
To guarantee bankruptcy eligibility, the most appropriate bankruptcy program should be chosen. A few important points to remember before proceeding: a trustee is assigned in every bankruptcy case to oversee the whole proceeding; a means test will be administered for both bankruptcy programs; and regardless of the amount of your debt, the basis for a debtor’s qualification is his monthly income.
For debtors who earn below the median income level of the state of Wyoming, you can qualify for Chapter 7 where your dischargeable debts will be eliminated. The trustee randomly assigned to your bankruptcy case will take over your non-exempt assets and liquidate it. The proceeds of the sale will be distributed to the creditors through your trustee. Any dischargeable debt after the pay off will be eliminated as deemed necessary by the trustee.
If the debtor’s regular monthly income is more than the median income level of the state based on the latest data from the US Census Bureau, he can opt to apply for Chapter 13 or the debt restructuring program where a debtor’s repayment plan is subject to the court’s approval. During the 341 meeting the creditors may object to the terms of your repayment plan, but the final decision will be made by the bankruptcy judge. If this plan seems plausible, the court will appoint a trustee to help monitor the day-to-day implementation of the plan. From there, the debtor will remit his payments to the trustee on a monthly basis. It is then the trustee’s duty to pay the money to the creditors.
When the assets are liquidated, only the non-exempts are included. The exemptions are safeguarded by the court, and aside from the federal court exemptions, Wyoming bankruptcy laws have specific exemptions too. The following assets are included:
• Your home for up to $10,000 per resident;
• A mobile home for up to $6,000;
• Clothing and wedding ring for up to $1,000;
• A motor vehicle for up to $2,400;
• Tools of trade worth up to $2,000;
• Personal property of up to $2,000; and
• Benefits like social services, public assistance, and retirement benefits.
The bankruptcy process is a daunting task and a lawyer should be considered as a necessity in this case. Consult your lawyer for every decision you make.